AbstractWhen products are sold by multiple vendors in various locations, the purchaser must decide what to order from each vendor and where to send it. To solve this decision problem, a novel optimization model is developed and applied to a situation involving the nationwide wholesale distribution of grocery products. Comparing the model’s solution with the actual record of shipments reveals instances in which the model selected higher-priced vendors in order to capitalize on truckload cost savings, which are seen to be an important factor in vendor selection. Additional models are developed to reduce computation time and assign shipments to vehicles.
Optimal vendor selection in a multiproduct supply chain with truckload discounts
Transportation Research Part E: Logistics and Transportation Review ; 44 , 5 ; 684-695
2007-01-21
12 pages
Article (Journal)
Electronic Resource
English
Optimal vendor selection in a multiproduct supply chain with truckload discounts
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