Fully Loaded Direct Shipping Strategy in One Warehouse/ N Retailer Systems without Central Inventories

Philip C. Jones and Tianbing Qian
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Philip C. Jones: Department of Management Sciences, College of Business Administration, The University of Iowa, Iowa City, Iowa 52242
Tianbing Qian: Department of Management Sciences, College of Business Administration, The University of Iowa, Iowa City, Iowa 52242

Transportation Science, 1997, vol. 31, issue 2, 193-195

Abstract: In this paper, we consider one warehouse/multiple retailer systems with transportation costs. The planning horizon is infinite and the warehouse keeps no central inventory. It is shown that the fully loaded direct shipping strategy is optimal among all possible shipping/allocation strategies if the truck capacity is smaller than a certain quantity, and a bound is provided for the general case.

Date: 1997
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ortrsc:v:31:y:1997:i:2:p:193-195

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