Journal of Korean Institute of Industrial Engineers (대한산업공학회지)
- Volume 24 Issue 1
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- Pages.157-165
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- 1998
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- 1225-0988(pISSN)
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- 2234-6457(eISSN)
A Dynamic Production and Transportation Model with Multiple Freight Container Types
다수의 화물컨테이너를 고려한 동적 생산-수송 모형에 관한 연구
Abstract
This paper considers the single-product production and transportation problem with discrete time, dynamic demand and finite time horizon, an extension of classical dynamic lot-sizing model. In the model, multiple freight container types are allowed as the transportation mode and each order (product) placed in a period is shipped immediately by containers in the period. Moreover, each container has type-dependent carrying capacity restriction and at most one container type is allowed in each shipping period. The unit freight cost for each container type depends on the size of its carrying capacity. The total freight cost is proportional to the number of each container type employed. Such a freight cost is considered as another set-up cost. Also, it is assumed in the model that production and inventory cost functions are dynamically concave and backlogging is not allowed. The objective of this study is to determine the optimal production policy and the optimal transportation policy simultaneously that minimizes the total system cost (including production cost, inventory holding cost, and freight cost) to satisfy dynamic demands over a finite time horizon. In the analysis, the optimal solution properties are characterized, based on which a dynamic programming algorithm is derived. The solution algorithm is then illustrated with a numerical example.
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