Joint production and delivery lot sizing for a make-to-order producer-buyer supply chain with transportation cost

Shine Der Lee, Yen Chen Fu

Research output: Contribution to journalArticlepeer-review

18 Citations (Scopus)

Abstract

An integrated production/delivery quantity model in a make-to-order producer-buyer supply chain is analyzed in this paper. The coordinated policy is achieved by scheduling single setup at the producer with multi-delivery to the buyer. We develop two synchronized cost models that include setup cost at the producer, ordering cost at the buyer, inventory carrying cost, and transportation cost that is a fitted power function of delivery quantity, using actual shipping rate data. The mathematical analysis and computational study have demonstrated that significant cost savings can be realized by implementing the proposed approach into the network optimization process.

Original languageEnglish
Pages (from-to)23-35
Number of pages13
JournalTransportation Research Part E: Logistics and Transportation Review
Volume66
DOIs
Publication statusPublished - 2014 Jun

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Civil and Structural Engineering
  • Transportation

Fingerprint Dive into the research topics of 'Joint production and delivery lot sizing for a make-to-order producer-buyer supply chain with transportation cost'. Together they form a unique fingerprint.

Cite this