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Optimal inventory policies with two modes of freight transportation. (English) Zbl 1138.90328

Summary: Theoretical inventory models with constant demand rate and two transportation modes are analyzed in this paper. The transportation options are truckloads with fixed costs, a package delivery carrier with a constant cost per unit, or using a combination of both modes simultaneously. Exact algorithms for computing the optimal policies are derived for single stage models over both an infinite and a finite planning horizon.

MSC:

90B05 Inventory, storage, reservoirs
90B06 Transportation, logistics and supply chain management
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