Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
6896455 | European Journal of Operational Research | 2015 | 12 Pages |
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.
Keywords
Related Topics
Physical Sciences and Engineering
Computer Science
Computer Science (General)
Authors
Horst Tempelmeier, Oliver Bantel,