Logistics scheduling to minimize inventory and transport costs

Xiuli Wang and T.C.E. Cheng

International Journal of Production Economics, 2009, vol. 121, issue 1, 266-273

Abstract: We study a logistics scheduling problem where a manufacturer receives raw materials from a supplier, manufactures products in a factory, and delivers the finished products to a customer. The supplier, factory and customer are located at three different sites. The objective is to minimize the sum of work-in-process inventory cost and transport cost, which includes both supply and delivery costs. For the special case of the problem where all the jobs have identical processing times, we show that the inventory cost function can be unified into a common expression for various batching schemes. Based on this characteristic and other optimal properties, we develop an O(n) algorithm to solve this case. For the general problem, we examine several special cases, identify their optimal properties, and develop polynomial-time algorithms to solve them optimally.

Keywords: Logistics; scheduling; Inventory; and; transportation; Algorithms (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925-5273(09)00169-8
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:proeco:v:121:y:2009:i:1:p:266-273

Access Statistics for this article

International Journal of Production Economics is currently edited by Stefan Minner

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().