TY - GEN
T1 - Optimal outbound dispatching policy with pricing
AU - Hong, Ki Sung
AU - Lee, Chulung
PY - 2008
Y1 - 2008
N2 - Under a VMI(Vendor Managed Inventory) system, the vendor holds a certain level of control over not only inbound replenishment decisions on stocking but also outbound re-supply decisions. Hence, vendor faces a better opportunity to synchronize the inventory and transportation decision. While shipment consolidation can reduce the transportation cost, however, delivery time to the customer may increase. Thus, inventory and transportation decision must be coordinated considering both customer service requirement and transportation cost. In this study, we have developed a optimal outbound dispatch policy to maximize profits under a quantity based dispatching policy. A mathematical model is developed and an efficient algorithm is provided to obtain the optimal parameters for the proposed policy.
AB - Under a VMI(Vendor Managed Inventory) system, the vendor holds a certain level of control over not only inbound replenishment decisions on stocking but also outbound re-supply decisions. Hence, vendor faces a better opportunity to synchronize the inventory and transportation decision. While shipment consolidation can reduce the transportation cost, however, delivery time to the customer may increase. Thus, inventory and transportation decision must be coordinated considering both customer service requirement and transportation cost. In this study, we have developed a optimal outbound dispatch policy to maximize profits under a quantity based dispatching policy. A mathematical model is developed and an efficient algorithm is provided to obtain the optimal parameters for the proposed policy.
KW - Linear demand function
KW - Pricing
KW - Shipment consolidation
UR - http://www.scopus.com/inward/record.url?scp=62749182252&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=62749182252&partnerID=8YFLogxK
U2 - 10.1109/IEEM.2008.4738148
DO - 10.1109/IEEM.2008.4738148
M3 - Conference contribution
AN - SCOPUS:62749182252
SN - 9781424426300
T3 - 2008 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2008
SP - 1630
EP - 1633
BT - 2008 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2008
T2 - 2008 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2008
Y2 - 8 December 2008 through 11 December 2008
ER -