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EOQ Models with Two Modes of Freight Transportation and All-Units Quantity Discounts

In: Handbook of EOQ Inventory Problems

Author

Listed:
  • Abraham Mendoza

    (Universidad Panamericana)

  • José A. Ventura

    (The Pennsylvania State University)

Abstract

This chapter studies two valuable contributions in the literature regarding extensions of the traditional economic order quantity model. In particular, a base theoretical model for a single-stage system over the infinite horizon and two modes of transportation is presented. The transportation options are truckload transportation with fixed cost per truck, less than truckload transportation with a constant cost per unit shipped, or a combination of both modes simultaneously. Then, an extension of this model to include the all-units quantity discount scheme is studied. Exact algorithms are proposed for computing optimal policies for each case.

Suggested Citation

  • Abraham Mendoza & José A. Ventura, 2014. "EOQ Models with Two Modes of Freight Transportation and All-Units Quantity Discounts," International Series in Operations Research & Management Science, in: Tsan-Ming Choi (ed.), Handbook of EOQ Inventory Problems, edition 127, pages 139-153, Springer.
    • Handle: RePEc:spr:isochp:978-1-4614-7639-9_7
    DOI: 10.1007/978-1-4614-7639-9_7
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    Cited by:

    1. Ke, Ginger Y. & Bookbinder, James H., 2018. "Coordinating the discount policies for retailer, wholesaler, and less-than-truckload carrier under price-sensitive demand: A tri-level optimization approach," International Journal of Production Economics, Elsevier, vol. 196(C), pages 82-100.

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