In this paper, we analyze how to continuously adjust the speed in a supply chain with stochastic demand. For each unit (e.g., truckload, shipping container) in the chain, one must decide at which speed it should be moved downstream, given the state of the system, to minimize total supply chain costs. We decompose the problem into a set of one-dimensional subproblems that can be easily solved and characterize the optimal variable speed policy: under some assumptions, we show that it is optimal to set a speed that is first increasing in the distance to the market, and then decreasing. As a result, at optimality a given unit will experience an accelerating speed and then it will be slowed down, unless a demand occurs, in which case, the speed will be adjusted upward. We finally provide a transportation case study where we estimate the benefits of a variable-speed compared to a fixed-speed policy and show them to be significant both financially and from a CO2-emissions perspective.


    Access

    Access via TIB

    Check availability in my library

    Order at Subito €


    Export, share and cite



    Title :

    Dynamic Speed Optimization in Supply Chains with Stochastic Demand




    Publication date :

    2015



    Type of media :

    Article (Journal)


    Type of material :

    Print


    Language :

    English



    Classification :

    Local classification TIB:    770/1935/7000
    BKL:    55.80 / 55.80 Verkehrswesen, Transportwesen: Allgemeines



    Dynamic Speed Optimization in Supply Chains with Stochastic Demand

    Berling, Peter / Martínez-de-Albéniz, Victor | British Library Online Contents | 2016



    Dynamic Optimization in Supply Chains

    Drago Pupavac / Jasmin Pašagić Škrinjar / Ratko Zelenika | DOAJ | 2007

    Free access

    Supply and demand for supply chains

    British Library Online Contents | 2014