 Design and evaluation of an integrated inventory and transportation systemZ.N. Chen, C.K.M. Lee, W.H. Ip and G.T.S. Ho Transportation Planning and Technology, 2012, vol. 35, issue 4, 491-507 Abstract: This paper proposes the adoption of an integrated inventory and transportation system (IITS) to minimize the total costs of inventory and transportation. A non-linear programing is developed by analyzing transportation and inventory costs with one supplier and many retailers in the distribution environment. The paper compares the proposed model with the traditional approach in computing total costs with numerical data. The results indicate that the total costs can be optimized by adopting integrated programing rather than the traditional approach, along with achieving improved customer service levels. In particular, sensitivity analysis is applied to determine the performance of the IITS under various transportation costs, holding costs and shortage costs. It shows that the transportation cost per unit is most sensitive in the proposed model. In this situation, the IITS is more effective for cost saving when set-up cost, holding and shortage costs are high, but is less effective for situations involving high per-unit transportation costs. Date: 2012 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:transp:v:35:y:2012:i:4:p:491-507 Ordering information: This journal article can be ordered from DOI: 10.1080/03081060.2012.680821 Access Statistics for this article Transportation Planning and Technology is currently edited by Dr. David Gillingwater More articles in Transportation Planning and Technology from Taylor & Francis Journals |
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