Transportation mode selection with positive manufacturing lead time

G.P. Kiesmüller, A.G. de Kok and J.C. Fransoo

Transportation Research Part E: Logistics and Transportation Review, 2005, vol. 41, issue 6, 511-530

Abstract: In this paper we present a dual supply model taking into account that in many industries the replenishment cycle does not only involve the physical distribution of goods, but also the manufacturing of products. Further, we suggest postponing the transportation mode decision until the products are available for shipping. We investigate a class of order-up-to policies and show how to compute the optimal policy parameters. Our model enables us to quantify the value of the postponement of the transportation decision and the value of using an additional slow mode instead of only using the existing fast mode. In a numerical study the influence of various model parameters is investigated and it is shown that the use of a slow mode can be economically beneficial, especially for low value items.

Keywords: Stochastic; model; Inventory; Transportation; Dual; supply; Europe (search for similar items in EconPapers)
Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1366554505000530
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:41:y:2005:i:6:p:511-530

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

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 ().