Optimal outbound dispatching policy with pricing

Ki Sung Hong, Chul Ung Lee

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

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.

Original languageEnglish
Title of host publication2008 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2008
Pages1630-1633
Number of pages4
DOIs
Publication statusPublished - 2008 Dec 1
Event2008 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2008 - Singapore, Singapore
Duration: 2008 Dec 82008 Dec 11

Other

Other2008 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2008
CountrySingapore
CitySingapore
Period08/12/808/12/11

Fingerprint

Costs
Consolidation
Profitability
Mathematical models
Pricing
Dispatching
Vendors
Transportation costs
Vendor managed inventory
Customer service
Replenishment
Inventory systems
Mathematical model
Profit
Delivery time

Keywords

  • Linear demand function
  • Pricing
  • Shipment consolidation

ASJC Scopus subject areas

  • Management Information Systems
  • Industrial and Manufacturing Engineering

Cite this

Hong, K. S., & Lee, C. U. (2008). Optimal outbound dispatching policy with pricing. In 2008 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2008 (pp. 1630-1633). [4738148] https://doi.org/10.1109/IEEM.2008.4738148

Optimal outbound dispatching policy with pricing. / Hong, Ki Sung; Lee, Chul Ung.

2008 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2008. 2008. p. 1630-1633 4738148.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Hong, KS & Lee, CU 2008, Optimal outbound dispatching policy with pricing. in 2008 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2008., 4738148, pp. 1630-1633, 2008 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2008, Singapore, Singapore, 08/12/8. https://doi.org/10.1109/IEEM.2008.4738148
Hong KS, Lee CU. Optimal outbound dispatching policy with pricing. In 2008 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2008. 2008. p. 1630-1633. 4738148 https://doi.org/10.1109/IEEM.2008.4738148
Hong, Ki Sung ; Lee, Chul Ung. / Optimal outbound dispatching policy with pricing. 2008 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2008. 2008. pp. 1630-1633
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