Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1023891 | Transportation Research Part E: Logistics and Transportation Review | 2009 | 18 Pages |
Abstract
This paper presents a formal analysis of the consolidation effect in a wider perspective. While demonstrating that the stock saving structure depends on the interaction between the coefficient of variation of demand and the ratio between inventory ordering and holding costs, this research indicates that the ratio between the standard deviations of lead time at potential facilities is the key variable for consolidation. Sensitivity analyses are also performed to address common managerial issues, which can arise during the consolidation decision, such as the impact on total costs and the assumption of uncorrelated demands.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Peter F. Wanke,