IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v143y2006i1p77-8910.1007-s10479-006-7373-2.html
   My bibliography  Save this article

Evaluation of logistics related policies between two different levels of the supply chain network—a case study

Author

Listed:
  • B. Rajeshkumar
  • T. RameshBabu

Abstract

This paper will discuss the case study conducted to evaluate a logistics related policy (time between successive collections of commodities) that optimizes the total shifting cost and minimizes the transportation cost by considering the problem as a Dynamic Multi Capacitated Vehicle Routing Problem (DMCVRP). The DMCVRP is formulated and solved for various policies using Mixed Integer Linear Programming (MILP) with an objective to minimize the cost associated with the distance traveled by the vehicles and the cost associated with unutilized capacity in the vehicles. Finally, we approximate the total shifting cost as a single variable function of transportation, inspection and inventory carrying cost, which possesses continuous derivatives at every order with the single variable as time between successive collections and derive the necessary and sufficient conditions in locating the optimum (minimum) total shifting cost. Copyright Springer Science + Business Media, Inc. 2006

Suggested Citation

  • B. Rajeshkumar & T. RameshBabu, 2006. "Evaluation of logistics related policies between two different levels of the supply chain network—a case study," Annals of Operations Research, Springer, vol. 143(1), pages 77-89, March.
  • Handle: RePEc:spr:annopr:v:143:y:2006:i:1:p:77-89:10.1007/s10479-006-7373-2
    DOI: 10.1007/s10479-006-7373-2
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10479-006-7373-2
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s10479-006-7373-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Qu, Wendy W. & Bookbinder, James H. & Iyogun, Paul, 1999. "An integrated inventory-transportation system with modified periodic policy for multiple products," European Journal of Operational Research, Elsevier, vol. 115(2), pages 254-269, June.
    2. Anily, Shoshana, 1994. "The general multi-retailer EOQ problem with vehicle routing costs," European Journal of Operational Research, Elsevier, vol. 79(3), pages 451-473, December.
    3. S. Viswanathan & Kamlesh Mathur, 1997. "Integrating Routing and Inventory Decisions in One-Warehouse Multiretailer Multiproduct Distribution Systems," Management Science, INFORMS, vol. 43(3), pages 294-312, March.
    4. S. Anily & A. Federgruen, 1993. "Two-Echelon Distribution Systems with Vehicle Routing Costs and Central Inventories," Operations Research, INFORMS, vol. 41(1), pages 37-47, February.
    5. S. Anily & A. Federgruen, 1990. "One Warehouse Multiple Retailer Systems with Vehicle Routing Costs," Management Science, INFORMS, vol. 36(1), pages 92-114, January.
    6. Walter J. Bell & Louis M. Dalberto & Marshall L. Fisher & Arnold J. Greenfield & R. Jaikumar & Pradeep Kedia & Robert G. Mack & Paul J. Prutzman, 1983. "Improving the Distribution of Industrial Gases with an On-Line Computerized Routing and Scheduling Optimizer," Interfaces, INFORMS, vol. 13(6), pages 4-23, December.
    7. Awi Federgruen & Paul Zipkin, 1984. "A Combined Vehicle Routing and Inventory Allocation Problem," Operations Research, INFORMS, vol. 32(5), pages 1019-1037, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dias, J.C. Quaresma & Calado, J.M.F. & Mendonça, M.C., 2010. "The role of European «ro-ro» port terminals in the automotive supply chain management," Journal of Transport Geography, Elsevier, vol. 18(1), pages 116-124.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Raa, Birger & Aghezzaf, El-Houssaine, 2009. "A practical solution approach for the cyclic inventory routing problem," European Journal of Operational Research, Elsevier, vol. 192(2), pages 429-441, January.
    2. Ali Ekici & Okan Örsan Özener & Gültekin Kuyzu, 2015. "Cyclic Delivery Schedules for an Inventory Routing Problem," Transportation Science, INFORMS, vol. 49(4), pages 817-829, November.
    3. le Blanc, H.M. & Cruijssen, F. & Fleuren, H.A. & de Koster, M.B.M., 2006. "Factory gate pricing: An analysis of the Dutch retail distribution," European Journal of Operational Research, Elsevier, vol. 174(3), pages 1950-1967, November.
    4. Cruijssen, F., 2006. "Horizontal cooperation in transport and logistics," Other publications TiSEM ab6dbe68-aebc-4b03-8eea-d, Tilburg University, School of Economics and Management.
    5. Leandro C. Coelho & Jean-François Cordeau & Gilbert Laporte, 2014. "Thirty Years of Inventory Routing," Transportation Science, INFORMS, vol. 48(1), pages 1-19, February.
    6. Mosca, Alyssa & Vidyarthi, Navneet & Satir, Ahmet, 2019. "Integrated transportation – inventory models: A review," Operations Research Perspectives, Elsevier, vol. 6(C).
    7. N H Moin & S Salhi, 2007. "Inventory routing problems: a logistical overview," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(9), pages 1185-1194, September.
    8. Anton J. Kleywegt & Vijay S. Nori & Martin W. P. Savelsbergh, 2004. "Dynamic Programming Approximations for a Stochastic Inventory Routing Problem," Transportation Science, INFORMS, vol. 38(1), pages 42-70, February.
    9. Qu, Wendy W. & Bookbinder, James H. & Iyogun, Paul, 1999. "An integrated inventory-transportation system with modified periodic policy for multiple products," European Journal of Operational Research, Elsevier, vol. 115(2), pages 254-269, June.
    10. Zhao, Qiu-Hong & Chen, Shuang & Zang, Cun-Xun, 2008. "Model and algorithm for inventory/routing decision in a three-echelon logistics system," European Journal of Operational Research, Elsevier, vol. 191(3), pages 623-635, December.
    11. Mohd Kamarul Irwan Abdul Rahim & El-Houssaine Aghezzaf & Veronique Limère & Birger Raa, 2016. "Analysing the effectiveness of vendor-managed inventory in a single-warehouse, multiple-retailer system," International Journal of Systems Science, Taylor & Francis Journals, vol. 47(8), pages 1953-1965, June.
    12. Anton J. Kleywegt & Vijay S. Nori & Martin W. P. Savelsbergh, 2002. "The Stochastic Inventory Routing Problem with Direct Deliveries," Transportation Science, INFORMS, vol. 36(1), pages 94-118, February.
    13. Zhao, Qiu-Hong & Wang, Shou-Yang & Lai, K.K., 2007. "A partition approach to the inventory/routing problem," European Journal of Operational Research, Elsevier, vol. 177(2), pages 786-802, March.
    14. Oğuz Solyalı & Haldun Süral, 2011. "A Branch-and-Cut Algorithm Using a Strong Formulation and an A Priori Tour-Based Heuristic for an Inventory-Routing Problem," Transportation Science, INFORMS, vol. 45(3), pages 335-345, August.
    15. Wei Huang & H. Edwin Romeijn & Joseph Geunes, 2005. "The continuous‐time single‐sourcing problem with capacity expansion opportunities," Naval Research Logistics (NRL), John Wiley & Sons, vol. 52(3), pages 193-211, April.
    16. Fokkema, Jan Eise & Land, Martin J. & Coelho, Leandro C. & Wortmann, Hans & Huitema, George B., 2020. "A continuous-time supply-driven inventory-constrained routing problem," Omega, Elsevier, vol. 92(C).
    17. Ali Diabat & Tarek Abdallah & Tung Le, 2016. "A hybrid tabu search based heuristic for the periodic distribution inventory problem with perishable goods," Annals of Operations Research, Springer, vol. 242(2), pages 373-398, July.
    18. N Rizk & A Martel & S D'Amours, 2008. "Synchronized production–distribution planning in a single-plant multi-destination network," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(1), pages 90-104, January.
    19. Divsalar, Ali & Vansteenwegen, Pieter, 2016. "A two-phase algorithm for the cyclic inventory routing problemAuthor-Name: Chitsaz, Masoud," European Journal of Operational Research, Elsevier, vol. 254(2), pages 410-426.
    20. Cheng, Chun & Yang, Peng & Qi, Mingyao & Rousseau, Louis-Martin, 2017. "Modeling a green inventory routing problem with a heterogeneous fleet," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 97(C), pages 97-112.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:annopr:v:143:y:2006:i:1:p:77-89:10.1007/s10479-006-7373-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.