Browse > Article

An Optimal Distribution Model under Consideration of Delivery Unit and Backlogging Costs  

Lee, Yang Ho (Department of Industrial Engineering, Hanyang University)
An, Joon-Hong (Department of Industrial Engineering, Hanyang University)
Choi, Gyunghyun (Department of Industrial Engineering, Hanyang University)
Publication Information
Journal of Korean Institute of Industrial Engineers / v.29, no.3, 2003 , pp. 206-212 More about this Journal
Abstract
In this paper, we propose a mathematical optimization model with a suitable algorithm to determine delivery and backlogging quantities by minimizing the total cost including the penalty costs for delay. The system has fixed transshipment costs and demands are fulfilled by some delivery units that represent the volume of delivery amount to be shipped in a single time period. Since, backlogging is allowed, demands could be delivered later at the expense of some penalty costs. The model provides the optimal decisions on when and how much to he delivered while minimizing the total costs. To solve the problem, we propose an algorithm that uses the Lagrangian dual in conjunction with some primal heuristic techniques that exploit the special structure of the problem. Finally, we present some computational test results along with comments on the further study.
Keywords
delivery unit; backlog; lagrangian dual; subgradient optimization; primal heuristic;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Holmberg, K., Joborn, M. and Lundgren J.T.(1998), Improved Empty Freight Car Distribution. Transportation Science, 32(2), 163-173
2 Lee, W.S.(1998), A Dynamic Production and Transportation Model with Multiple Freight Container Types. Journal of the Korean Institute of Industrial Engineers, 24(1), 157-165
3 Rim. S.C. and Yoo, Y.J.(2001), Impact of Flexible Shipping Date in Consolidated Transportation for Industrial Complexes, Proc. of the Conference on the Korean Institute of Industrial Engineers, 699-702
4 Chen, F., Federgruen, A. and Zheng, Y.(2001), Near-Optimal Pricing and Replenishment Strategies for a Retail/Distribution System, Operations Research, 49(6), 839-853   DOI   ScienceOn
5 Sherali. H.D. and Choi, G.(1996), Recovery of primal solution when using subgradient optimization methods to solve Lagrangian duals of linear programs. Operational Research Letters, 19, 105-113
6 Vroblefski. M., Ramesh, R. and Zionts. S.(2000). Efficient lot-sizing under a differential transportation cost structure for serially distributed warehouses, European Journal of Operational Research, 127, 574-593
7 Karajewski. L. J. and Ritzman L. P.(1997), Operations Management Strategy and Analysis, Addison Weslsy, U.S.A.
8 Lee, C., Cetinkaya S., and Wagelmans A.(2001), A Dynamic Lot-Sizing Model with Demand Time Windows, Management Science. 47(10), 1384-1395
9 Fumero, F. and Vercellis, C.(1999), Synchronized Development of Production, Inventory and Distribution Schedules. Transportation Science, 33(3), 330-340
10 Gupta, O.K.(1992), A lot-size model with discrete transportation costs, Computers and Industrial Engineering, 22, 397-402
11 van Hoek, R.J. and van Dierdonck, R.(2000). Postponed manufacturing supplementary to transportation services? Transportation Research Part E, 36, 205-217
12 Brandimarte, P. and Villa, A.(1995). Advanced Models for' Manufacturing Systems Management, CRC Press. U.S.A.
13 Kleywegt, A. J. and Papastavrou, J. D.(1998). Acceptance and Dispatching Policies for a Distribution Problem. Transportation Science. 32(2), 127-141   DOI   ScienceOn
14 Ahn, B., Watanabe, N. and Hiraki, S.(1994), A mathematical model to minimize the inventory and transportation costs in the logistics systems. Computers and Industrial Engineering, 27, 229-232
15 Kasilingam R. G.(1998), Logistics and Transportation Design and planning. Kluwer Academic Publishers. U.S.A.