Using truck-inventory-cost to obtain solutions to multi-period logistics models

Ali, Agha Iqbal; O’Connor, Debra J.

doi:10.1016/j.ijpe.2012.12.022

Cited by 7 publications

(7 citation statements)

References 16 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The multi-period ITP has been considered to be NP-hard, and several authors have emphasized the need of heuristic solution approach [1,36,39,52,63]. Practically, problem [P] can be solved by any state of the art MIP solvers.…”

Section: Solution Methodologymentioning

confidence: 99%

“…Jawahar and Balaji [32] studied a fixed-charge transportation problem with inventory decisions in a multi-supplier multi-retailer supply chain with backorders at the retailers. A trade-off between the fixed transportation and inventory carrying costs in a multi-period logistics system is analyzed by Ali and O'conor [1], and they emphasized the necessity of a heuristic solution approach. In the context of foodgrain supply chain, Asgari et al [4] presented a MIP model to determine the storage and inter-province transportation of wheat to minimize the total cost and proposed a genetic algorithm (GA) based solution approach.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The literature dealing with the integration of inventory and transportation decisions in supply chain is replete. A recent comprehensive taxonomic review in this area can be found in Sancak and Salman [52] and Ali and O'Connor [1]. Also, the consideration of freight cost in the recent literature along with inventory aspect can be found in Bravo and Vidal [7].…”

mentioning

confidence: 99%

See 2 more Smart Citations

A hybrid fix-and-optimize heuristic for integrated inventory-transportation problem in a multi-region multi-facility supply chain

Tanksale

Jha

2020

RAIRO-Oper. Res.

View full text Add to dashboard Cite

In this work, we study an integrated inventory-transportation problem in a supply chain consisting of region-bound warehouses located in different regions. The supply chain deals with multiple items that compete for storage space and transportation capacity with multi-modal transportation considering regional capacity constraint for each mode of transportation. The objective is to determine an optimal storage and transportation plan to satisfy the demand of all regions without shortages for known procurement plan for all items. The problem is formulated as a mixed integer programming (MIP) model for minimizing the total costs over a finite planning horizon. An MIP-based fix-and-optimize (F&O) heuristic with several decomposition schemes is proposed to solve the problem efficiently. The performance of the decomposition schemes is investigated against the structure of the sub-problems obtained. To enhance the performance, F&O is crossbred with two metaheuristics -genetic algorithm (GA) and iterated local search (ILS) separately, which lead to hybrid heuristic approach. Extensive numerical experiments are carried out to analyze the performance of the proposed solution methodology by randomly generating several problem instances built using data collected from the Indian Public Distribution System. The proposed solution approach is found to be computationally efficient and effective, and outperforming state of the art MIP solver Cplex for practical size problem instances. Also, the hybridization of F&O heuristic with GA and ILS boosts its performance although with a justified increase in the computational time.Mathematics Subject Classification. 90B05, 90B06, 90B90, 90C11.aspects are practiced independently which may result in suboptimal performance of a supply chain. Therefore, the need for close coordination between inventory control and transportation planning is highlighted in the literature [35].Along with the traditional supply chain, the challenge of competitive performance through efficient management of inventory and transportation is equally applicable to a non-profit supply chain such as public distribution system (PDS). PDS is practiced in most of the countries for distribution of essential commodities, particularly foodgrains, at subsidized prices to the needy people of society to ensure the food security. In the Indian PDS, foodgrains, mainly wheat and rice, are procured from farmers and distributed to the beneficiaries at subsidized prices to ensure availability and affordability of foodgrains. Serving to more than 813.5 million beneficiaries, the Indian PDS is the largest in the world. The supply chain of the Indian PDS has some special characteristics. It consists of multiple storage facilities (warehouses) located across the country to store the foodgrains to meet the demand of different regions. Each region has a procurement and demand strategy that is aggregated over all the warehouses located in that region. Consequently, it is necessary to decide which warehouse to store the procured items and w...

show abstract

Section: Solution Methodologymentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

A hybrid fix-and-optimize heuristic for integrated inventory-transportation problem in a multi-region multi-facility supply chain

Tanksale

Jha

2020

RAIRO-Oper. Res.

View full text Add to dashboard Cite

show abstract

“…The subject of the study are warehousing and stocks costs. Ali and O'Connor (2013) designed a model with the purpose of achieving effective operational planning in the distribution system. The model determines the optimum truck schedule and enables a systematic classification of stocks over a long period of time, which in turn reduces transport and stocks costs.…”

Section: Literature Reviewmentioning

confidence: 99%

A Model for Managing Logistics Costs Throughout a Product’s Life Cycle: A Case Study of a Multinational Manufacturing Company

Škerlič

Sokolovskij

2019

Transport

View full text Add to dashboard Cite

The goal of the study is to develop a model that focuses on managing logistics costs at all stages of a product’s life cycle. The model includes several different cost components and provides a wider coverage of individual processes, as logistics costs are present in different areas of a company’s operations. The applicability of the proposed method was tested in a multinational company that manufactures furniture fittings on a randomly selected product. The test results provide a theoretical and practical confirmation of the necessity to manage the logistics costs for an individual product, since other models are focused exclusively on the cost optimisation of individual logistics processes. The model therefore complements the existing knowledge and represents a practical tool for logistics professionals that enables more efficient logistics costs planning at an early stage in the development of a product, which can result in the long-term reduction in the total costs of logistics and improve the quality of business processes.

show abstract

“…They proved that if work orders from a supplier, manufacturer, and buyer require the same amount of time to be processed, the costs of inventory and transport can be optimized on all levels. Ali and O'Connor [1] developed a model that is designed for effective operational planning in the distribution system and determines the number of trucks that are deployed, the placement of the trucks, and inventories over time. The model optimizes the total fixed cost of transporting a product and the total inventory carrying costs at both echelons.…”

Section: Review Of the Literature In The Field Of Logistics Cost Modelsmentioning

confidence: 99%

A decision-making model for controlling logistics costs

2016

View full text Add to dashboard Cite

Original scientific paper A lack of understanding of logistics costs, particularly in terms of their integrity and interdependence, allows for the interests of individual departments within a company, which are not always in line with the common interests of the business process of the company, to take precedence over necessary logistics cost planning. In order to address this problem, we have developed a model that takes into account all the logistical costs within a company and represents an important decision-making tool that can be used by employees at different levels of the organization, covering different business functions. We have tested the model on a specific product in a company that operates in the automotive industry and determined that the model enables us to have greater control over logistics costs and improves the quality of information on logistics costs. Keywords: decision making; knowledge transfer; logistics cost; logistics cost models Model odlučivanja za kontrolu logističkih troškovaIzvorni znanstveni članak Nedostatno poznavanje logističkih troškova, posebice u pogledu njihove cjelovitosti i međusobne ovisnosti, vodi do toga da na štetu nužnog planiranja logističkih troškova prevagnu interesi pojedinačnih službi unutar poduzeća koji nisu u skladu s općim interesima poslovnog procesa poduzeća. Suočeni s tim problemom izradili smo model koji uzima u obzir sve logističke troškove u jednom poduzeću i koji predstavlja važno oruđe odlučivanja za zaposlenike svih razina i funkcija. Taj model smo testirali na specifičnom proizvodu jednog poduzeća iz automobilske industrije i ustanovili da nam on omogućava veću kontrolu nad logističkim troškovima i poboljšava kvalitetu informacija o logističkim troškovima.

show abstract

Using truck-inventory-cost to obtain solutions to multi-period logistics models

Cited by 7 publications

References 16 publications

A hybrid fix-and-optimize heuristic for integrated inventory-transportation problem in a multi-region multi-facility supply chain

A hybrid fix-and-optimize heuristic for integrated inventory-transportation problem in a multi-region multi-facility supply chain

A Model for Managing Logistics Costs Throughout a Product’s Life Cycle: A Case Study of a Multinational Manufacturing Company

A decision-making model for controlling logistics costs

Contact Info

Product

Resources

About