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.


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    Title :

    Multi-level inventory management decisions with transportation cost consideration


    Contributors:


    Publication date :

    2009-10-18


    Size :

    16 pages




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English





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