Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5110380 | Transportation Research Part E: Logistics and Transportation Review | 2017 | 19 Pages |
Abstract
Warehouse capacity constraint has been one obstacle to achieving the channel-wide optimal decision in inventory management. We studied an integrated inventory model consisting of a single vendor and multiple buyers with warehouse capacity sharing via transshipment. We proposed an optimal transshipment policy by developing nonlinear programming models and genetic algorithms as well as obtaining Karush-Kuhn-Tucker points. This inventory policy can significantly reduce the channel-wide cost and the performance is influenced by the consideration of fixed transshipment costs. Sensitivity analyses show that parameters have different impacts on the channel-wide cost and the performances of the algorithms.
Related Topics
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Authors
Xuehao Feng, Ilkyeong Moon, Kwangyeol Ryu,