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

Abraham Mendoza () and José A. Ventura ()
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Abraham Mendoza: Universidad Panamericana
José A. Ventura: The Pennsylvania State University

A chapter in Handbook of EOQ Inventory Problems, 2014, pp 139-153 from Springer

Abstract: 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.

Keywords: Optimal Policy; Transportation Cost; Order Interval; Infinite Horizon; Economic Order Quantity (search for similar items in EconPapers)
Date: 2014
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DOI: 10.1007/978-1-4614-7639-9_7

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