This paper explores a neoteric approach to geometric shipment policy and concerns the impact of controllable lead time, setup cost reduction, lost sales caused by stock-out and freight cost within an integrated vendor–buyer supply chain configuration using service-level constraint. In particular, the transportation cost is a function of shipping weight, distance and transportation modes. In other words, truckload (TL) and less-than-truckload (LTL) shipments. A heuristic model is developed to minimize the joint expected total cost (JETC), when the mode of transportation is limited to TL and LTL shipments. Numerical examples including the sensitivity analysis with some managerial insights of system parameters is implemented to endorse the outcome of the supply chain models.
Keywords: Integrated inventory model, freight cost, geometric shipment policy, setup cost reduction, lead time
@article{RO_2020__54_3_653_0,
author = {Hemapriya, Selvaraj and Uthayakumar, Ramasamy},
title = {A neoteric approach to geometric shipment policy in an integrated supply chain with setup cost reduction and freight cost using service level constraint},
journal = {RAIRO - Operations Research - Recherche Op\'erationnelle},
pages = {653--673},
year = {2020},
publisher = {EDP Sciences},
volume = {54},
number = {3},
doi = {10.1051/ro/2019011},
mrnumber = {4075322},
zbl = {1437.90010},
language = {en},
url = {https://www.numdam.org/articles/10.1051/ro/2019011/}
}
TY - JOUR AU - Hemapriya, Selvaraj AU - Uthayakumar, Ramasamy TI - A neoteric approach to geometric shipment policy in an integrated supply chain with setup cost reduction and freight cost using service level constraint JO - RAIRO - Operations Research - Recherche Opérationnelle PY - 2020 SP - 653 EP - 673 VL - 54 IS - 3 PB - EDP Sciences UR - https://www.numdam.org/articles/10.1051/ro/2019011/ DO - 10.1051/ro/2019011 LA - en ID - RO_2020__54_3_653_0 ER -
%0 Journal Article %A Hemapriya, Selvaraj %A Uthayakumar, Ramasamy %T A neoteric approach to geometric shipment policy in an integrated supply chain with setup cost reduction and freight cost using service level constraint %J RAIRO - Operations Research - Recherche Opérationnelle %D 2020 %P 653-673 %V 54 %N 3 %I EDP Sciences %U https://www.numdam.org/articles/10.1051/ro/2019011/ %R 10.1051/ro/2019011 %G en %F RO_2020__54_3_653_0
Hemapriya, Selvaraj; Uthayakumar, Ramasamy. A neoteric approach to geometric shipment policy in an integrated supply chain with setup cost reduction and freight cost using service level constraint. RAIRO - Operations Research - Recherche Opérationnelle, Tome 54 (2020) no. 3, pp. 653-673. doi: 10.1051/ro/2019011
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