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Minimizing logistic costs in multistage supply chains

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  • Luca Bertazzi
  • Maria Grazia Speranza

Abstract

We consider the problem in which a set of products has to be shipped from a common origin to a common destination through one or several intermediate nodes with the objective of minimizing the sum of inventory and transportation costs when a set of possible shipping frequencies is given on each link. From the theoretical point of view, the main issue is the computation of the inventory cost in the intermediate nodes. From the computational point of view, given that the simpler single link problem is known to be NP‐hard, we present four classes of heuristic algorithms. The first two classes are based on the decomposition of the sequence in links, the third class on the adaptation of the EOQ‐type solution known for the continuous case, and the fourth on the optimal solution of a simpler problem through dynamic programming techniques. Finally, we compare them on a set of randomly generated problem instances. © 1999 John Wiley & Sons, Inc. Naval Research Logistics 46: 399–417, 1999

Suggested Citation

  • Luca Bertazzi & Maria Grazia Speranza, 1999. "Minimizing logistic costs in multistage supply chains," Naval Research Logistics (NRL), John Wiley & Sons, vol. 46(4), pages 399-417, June.
    • Handle: RePEc:wly:navres:v:46:y:1999:i:4:p:399-417
    DOI: 10.1002/(SICI)1520-6750(199906)46:43.0.CO;2-9
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    References listed on IDEAS

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    1. M. G. Speranza & W. Ukovich, 1996. "An algorithm for optimal shipments with given frequencies," Naval Research Logistics (NRL), John Wiley & Sons, vol. 43(5), pages 655-671, August.
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    6. Bertazzi, Luca & Speranza, Maria Grazia & Ukovich, Walter, 1997. "Minimization of logistic costs with given frequencies," Transportation Research Part B: Methodological, Elsevier, vol. 31(4), pages 327-340, August.
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    1. Bertazzi, Luca & Moezi, Sarem Deilami & Maggioni, Francesca, 2021. "The value of integration of full container load, less than container load and air freight shipments in vendor–managed inventory systems," International Journal of Production Economics, Elsevier, vol. 241(C).
    2. Katerina P. Papadaki & Warren B. Powell, 2003. "An adaptive dynamic programming algorithm for a stochastic multiproduct batch dispatch problem," Naval Research Logistics (NRL), John Wiley & Sons, vol. 50(7), pages 742-769, October.

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