##
**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 |

PDF
BibTeX
XML
Cite

\textit{B. Q. Rieksts} and \textit{J. A. Ventura}, Eur. J. Oper. Res. 186, No. 2, 576--585 (2008; Zbl 1138.90328)

Full Text:
DOI

### References:

[1] | Abad, P.; Aggarwal, V., Incorporating transportation cost in the lot sizing and pricing decisions with downward sloping demand, International Journal of Production Economics, 95, 297-305 (2005) |

[2] | Adelwahab, W.; Sargious, M., Freight rate structure and optimal shipment size in freight transportation, Logistics and Transportation Review, 26, 271-292 (1992) |

[3] | Arcelus, F.; Rowcroft, J., Inventory policies with freight and incremental quantity discounts, International Journal of Systems Science, 22, 2025-2037 (1991) · Zbl 0729.90662 |

[4] | Aucamp, D., Nonlinear freight costs in the EOQ problem, European Journal of Operational Research, 9, 61-63 (1982) · Zbl 0471.90042 |

[5] | Ballou, R., The accuracy for estimating truck class rates for logistical planning, Transportation Research A, 25A, 327-337 (1991) |

[6] | Burns, L.; Hall, R.; Blumenfeld, D., Distribution strategies that minimize transportation and inventory costs, Operations Research, 33, 469-490 (1985) · Zbl 0567.90020 |

[7] | Carter, J.; Ferrin, B., Transportation costs and inventory management: Why transportation costs matter, Production and Inventory Management Journal, 37, 58-62 (1996) |

[8] | Carter, J.; Ferrin, B.; Carter, C., The effect of less-than-truckload rates on the purchase order lot size decision, Transportation Journal, 34, 35-44 (1995) |

[9] | Harris, F., How many parts to make at once, Operations Research, 38, 947-950 (1990), reprint from Factory - The Magazine of Management 10 (1913) 135-136 |

[10] | Hwang, H.; Moon, D.; Shinn, S., An EOQ model with quantity discounts for both purchasing price and freight cost, Computers and Operations Research, 17, 73-78 (1990) · Zbl 0682.90032 |

[11] | Langley, J., The inclusion of transportation costs in inventory models: Some considerations, Journal of Business Logistics, 2, 106-125 (1980) |

[12] | Larson, P., The economic transportation quantity, Transportation Journal, 28, 43-48 (1988) |

[13] | Lee, C. Y., The economic order quantity for freight discount costs, IIE Transactions, 18, 318-320 (1986) |

[14] | Lippman, S., Economic order quantities and multiple set-up costs, Management Science, 18, 39-47 (1971) · Zbl 0248.90015 |

[15] | Russell, R.; Karjewski, J., Optimal purchase and transportation cost lot sizing for a single item, Decision Sciences, 22, 940-952 (1991) |

[16] | Schwarz, L., A simple continuous review deterministic one-warehouse \(N\)-retailer inventory problem, Management Science, 19, 555-566 (1973) · Zbl 0249.90018 |

[17] | Schwarz, L., Economic order quantities for products with finite demand horizons, AIIE Transactions, 4, 234-237 (1972) |

[18] | Swenseth, S.; Godfrey, M., Incorporating transportation costs into inventory replenishment decisions, International Journal of Production Economics, 77, 113-130 (2002) |

[19] | Swenseth, S.; Godfrey, M., Estimating freight rates for logistics decisions, Journal of Business Logistics, 17, 213-231 (1996) |

This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. It attempts to reflect the references listed in the original paper as accurately as possible without claiming the completeness or perfect precision of the matching.