Multi-level inventory management decisions with transportation cost consideration
Alireza Madadi,
Mary E. Kurz and
Jalal Ashayeri
Transportation Research Part E: Logistics and Transportation Review, 2010, vol. 46, issue 5, 719-734
Abstract:
In this article we address specific inventory management decisions with transportation cost consideration in a multi-level environment consisting of a supplier-warehouse-retailers. We develop two models - namely, decentralized ordering model and centralized ordering model to investigate the effect of collective ordering by retailers on the total inventory cost of the system. A numerical study shows that the proposed model is robust and generates reasonable cost savings. The models have potential in several multi-level applications such as fresh or frozen food delivery to stores of different supermarkets or the supply of medicine to a number of hospitals from a wholesaler.
Keywords: Inventory; management; Decentralized; ordering; Centralized; ordering; Transportation (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:eee:transe:v:46:y:2010:i:5:p:719-734
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