Article ID Journal Published Year Pages File Type
6896455 European Journal of Operational Research 2015 12 Pages PDF
Abstract
We present a procedure to compute the probability distribution of the number of transportation orders and the resulting excess transportation requirements or rather transportation costs. We show that the increase of transportation costs resulting from a safety stock reduction may offset the change of the inventory costs. This effect may have a significant impact on general optimality statements for multi-echelon inventory systems.
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Physical Sciences and Engineering Computer Science Computer Science (General)
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