TY - JOUR
T1 - Joint production and delivery lot sizing for a make-to-order producer-buyer supply chain with transportation cost
AU - Lee, Shine Der
AU - Fu, Yen Chen
N1 - Funding Information:
The authors thank the Editor-in-Chief and two anonymous referees for their constructive inputs and comments, which served to improve the manuscript. This work was supported in part by the National Science Council of Taiwan under Grant: NSC102-2410-H006-056 .
PY - 2014/6
Y1 - 2014/6
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=84897988804&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84897988804&partnerID=8YFLogxK
U2 - 10.1016/j.tre.2014.03.002
DO - 10.1016/j.tre.2014.03.002
M3 - Article
AN - SCOPUS:84897988804
SN - 1366-5545
VL - 66
SP - 23
EP - 35
JO - Transportation Research Part E: Logistics and Transportation Review
JF - Transportation Research Part E: Logistics and Transportation Review
ER -