Multi‐Item Grouping Algorithm Yielding Near‐Optimal Logistics Cost

Abstract

One justification for eliciting and representing the judgment strategy of an expert in a rule-based expert system (RBES) is to facilitate knowledge transfer to individuals with less expertise. However, prior research suggests complexities and potential problems when using RBESs for training. In this paper, a conceptual framework of user learning from RBESs is presented. It is proposed that learning may be ineffective when the problem representation of the RBES is inconsistent with the user's mental representation of the task-domain knowledge.An experiment was conducted to examine the effects of consistency (inconsistency) between the problem-solving strategy of RBESs and individuals' memory structures. Groups of subjects whose memory structure either matched or did not match two RBESs' problem-solving strategies were examined using an internal control evaluation task. The results suggest that learning was facilitated only for groups with congruence between the RBES's problem-solving strategy and a subject's memory structure. 263264 Decision Sciences [Vol. 21 However, research in cognitive psychology of learning, expert problem solving, and man-machine interface (MMI) suggests that using RBESs for training requires an understanding of the complex cognitive interface between the system and users. Unfortunately, most RBES research has been criticized for emphasizing the construction of the computer system while failing to adequately consider the cognitive aspects of the user-system interface [21 [291 [301 1491 1521 [531 [691. Jointly, these findings suggest that an existing RBES's usefulness in training may be limited.The purpose of this research is twofold. First, we provide a theoretical framework for user learning from decision aids such as RBESs. Specifically, we discuss the importance of the user's existing knowledge and mental representation of the system on learning the domain-specific knowledge represented in the RBES. It is hypothesized that if an RBES is to be successful as a training device, the knowledge structure of the rule base must be consistent with the user's mental representation of knowledge in the task domain. Second, we offer some experimental evidence to illustrate the importance of user cognitive processes in knowledge transfer.The present research has potential implications for both theory development and practice. The decision-aid literature has only scant underlying theory on the effects of decision aids on user learning and performance. As DeSanctis pointed out, There has been no research on learning and the use of decision support systems other than studies that consider the problem of teaching people to use software.The need is for research into how a user comes to integrate decision aids into the decision making process effectively, given that he or she is already familiar with the software. [30, pp. 4774781 information systems, and individual decision making in journals such as The Accounting Review, Accounting Organizations and Society, Journal of Accoun fancy, Journal of Inform...

A Heuristic Algorithm for the Capacitated Multiple Supplier Inventory Grouping Problem

“…Buffa and Munn (1990) present a realistic model for truck carrier freight rates, and develop a grouping heuristic that takes the weight and value of each item into consideration. They model freight rates using an exponential function of the shipment weight, which is a continuous approximation of the freight rate structure in the trucking industry.…”

“…In the deregulated trucking industry, for instance, unit freight rates are usually a decreasing function of shipment weight (Buffa & Munn, 1990). In this environment, it is possible to reduce transportation costs through a policy of large and infrequent shipments.…”

“…However, large shipments also lead to high average inventories and higher holding costs. The explicit inclusion of transportation costs for the purpose of grouping has been studied by researchers in operations management as "inbound consolidation" (Buffa & Munn, 1990;Russell & Krajewski, 1992a, 1992b. Freight networks is another area related to the grouping problem considered here.…”

Coordinated replenishments from multiple suppliers with price discounts

“…Lower inventories, however, are attained at the cost of higher transportation charges. Buffa and Munn [7] develop a model that integrates inventory consolidation and transportation economies found in the trucking industry. Their model takes into account the weight and the value of each item shipped and uses a freight rate, which is an exponential function of the shipping weight.…”

Multi-items ordering model considering transportation constraint on the inventory management

“…Tersine and Barman [7] constructed a model considering transportation condition (freight rate) to determine ordering size in a deterministic economic order quantity (EOQ) system. Buffa and Munn [1] proposed an algorithm that could formulate an inbound consolidation strategy. The model is available to the case of replenishing multi-items with some groups and the cost of transportation and inventory being affected by the strategy.…”