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A Note on Production and Shipment Lot Sizing in a Vendor-Buyer Supply Chain with Transportation Cost  

Kim, Chang-Hyun (전남대학교 문화사회과학대학 경상학부)
Kim, Tae-Bok (인천대학교 동북아물류대학원)
Publication Information
Journal of the Korean Operations Research and Management Science Society / v.33, no.4, 2008 , pp. 53-61 More about this Journal
Abstract
Recently, Ertogral et al.[2] suggested two models considering the transportation cost based on single-vendor single-buyer integrated production-inventory problem. Although their problem-solving algorithm guarantees solutions obtained are optimal, a limitation is revealed that its performance can be inefficient due to complete enumeration search in a certain range. In this paper, a more efficient algorithm in finding optimal solutions is suggested for the same problem suggested by Ertogral et at.[2]. Numerical examples are presented for illustrative purpose.
Keywords
Supply Chain Management; Transportation Cost; Joint Economic Lot Sizing Problem;
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  • Reference
1 Roger, M.H., "The Single-Vendor Single-Buyer Integrated Production-Inventory Model with a Generalized Policy," European Journal of Operational Research, Vol.97(1997), pp.493-499   DOI   ScienceOn
2 Goyal, S.K., "An Integrated Inventory Model for a Single Supplier-Single Customer Problem," International Journal of Production Research, Vol.15(1977), pp.107-111   DOI   ScienceOn
3 Ben-Daya, M., M. Darwish, and K. Ertogral, "The Joint Economic Lot Sizing Problem:Review and Extensions," European Journal of Operational Research, Vol.185(2008), pp.726-742   DOI   ScienceOn
4 Ertogral, K., M. Darwish, and M. Ben-Daya, "Production and Shipment Lot Sizing in a Vendor-Buyer Supply Chain with Transportation Cost," European Journal of Operational Research, Vol.176(2007), pp.1592-1606   DOI   ScienceOn