Joint production and delivery lot sizing for a make-to-order producer–buyer supply chain with transportation cost

Shine-Der Lee and Yen-Chen Fu

Transportation Research Part E: Logistics and Transportation Review, 2014, vol. 66, issue C, 23-35

Abstract: An integrated production/delivery quantity model in a make-to-order producer–buyer supply chain is analyzed in this paper. The coordinated policy is achieved by scheduling single setup at the producer with multi-delivery to the buyer. We develop two synchronized cost models that include setup cost at the producer, ordering cost at the buyer, inventory carrying cost, and transportation cost that is a fitted power function of delivery quantity, using actual shipping rate data. The mathematical analysis and computational study have demonstrated that significant cost savings can be realized by implementing the proposed approach into the network optimization process.

Keywords: Make-to-order production; Economic production quantity; Periodic delivery; Transportation cost; Supply chain (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1366554514000295
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transe:v:66:y:2014:i:c:p:23-35

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/bibliographic
http://www.elsevier. ... 600244/bibliographic

DOI: 10.1016/j.tre.2014.03.002

Access Statistics for this article

Transportation Research Part E: Logistics and Transportation Review is currently edited by W. Talley

More articles in Transportation Research Part E: Logistics and Transportation Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().