AbstractIn 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.
Multi-level inventory management decisions with transportation cost consideration
Transportation Research Part E: Logistics and Transportation Review ; 46 , 5 ; 719-734
2009-10-18
16 pages
Article (Journal)
Electronic Resource
English
Multi-level inventory management decisions with transportation cost consideration
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