Article ID Journal Published Year Pages File Type
1023576 Transportation Research Part E: Logistics and Transportation Review 2010 16 Pages PDF
Abstract

In 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.

Related Topics
Social Sciences and Humanities Business, Management and Accounting Business and International Management
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