Multi-Item Single-Vendor-Single-Buyer Problem with Consideration of Transportation Quantity Discount
This paper deals with the problem of shipping multiple commodities from a single vendor to a single buyer. Each commodity is assumed to be constantly consumed at the buyer, and periodically replenished from the vendor. Furthermore, these replenishments are restricted to happen at discrete time insta...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
2005
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| Subjects: | |
| Online Access: | http://hdl.handle.net/1721.1/29832 |
| _version_ | 1826209737929129984 |
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| author | Wang, Ye-Xin Bhatnagar, Rohit Graves, Stephen C. |
| author_facet | Wang, Ye-Xin Bhatnagar, Rohit Graves, Stephen C. |
| author_sort | Wang, Ye-Xin |
| collection | MIT |
| description | This paper deals with the problem of shipping multiple commodities from a single vendor to a single buyer. Each commodity is assumed to be constantly consumed at the buyer, and periodically replenished from the vendor. Furthermore, these replenishments are restricted to happen at discrete time instants, e.g., a certain time of the day or a certain day of the week. At any such time instant, transportation cost depends on the shipment quantity according to certain discount scheme. Specifically, we consider two transportation quantity discount schemes: LTL (less-than-truckload) incremental discount and TL (truckload) discount. For each case, we develop MIP (mixed integer programming) mathematical model whose objective is to make an integrated replenishment and transportation decision such that the total system cost is minimized. We also derive optimal solution properties and give numerical studies to investigate the problem. |
| first_indexed | 2024-09-23T14:28:15Z |
| format | Article |
| id | mit-1721.1/29832 |
| institution | Massachusetts Institute of Technology |
| language | English |
| last_indexed | 2024-09-23T14:28:15Z |
| publishDate | 2005 |
| record_format | dspace |
| spelling | mit-1721.1/298322019-04-12T07:24:08Z Multi-Item Single-Vendor-Single-Buyer Problem with Consideration of Transportation Quantity Discount Wang, Ye-Xin Bhatnagar, Rohit Graves, Stephen C. Vendor-Buyer Problem Transportation Quantity Discount LTL Incremental Discount TL Discount This paper deals with the problem of shipping multiple commodities from a single vendor to a single buyer. Each commodity is assumed to be constantly consumed at the buyer, and periodically replenished from the vendor. Furthermore, these replenishments are restricted to happen at discrete time instants, e.g., a certain time of the day or a certain day of the week. At any such time instant, transportation cost depends on the shipment quantity according to certain discount scheme. Specifically, we consider two transportation quantity discount schemes: LTL (less-than-truckload) incremental discount and TL (truckload) discount. For each case, we develop MIP (mixed integer programming) mathematical model whose objective is to make an integrated replenishment and transportation decision such that the total system cost is minimized. We also derive optimal solution properties and give numerical studies to investigate the problem. Singapore-MIT Alliance (SMA) 2005-12-13T17:35:45Z 2005-12-13T17:35:45Z 2006-01 Article http://hdl.handle.net/1721.1/29832 en Innovation in Manufacturing Systems and Technology (IMST) 165339 bytes application/pdf application/pdf |
| spellingShingle | Vendor-Buyer Problem Transportation Quantity Discount LTL Incremental Discount TL Discount Wang, Ye-Xin Bhatnagar, Rohit Graves, Stephen C. Multi-Item Single-Vendor-Single-Buyer Problem with Consideration of Transportation Quantity Discount |
| title | Multi-Item Single-Vendor-Single-Buyer Problem with Consideration of Transportation Quantity Discount |
| title_full | Multi-Item Single-Vendor-Single-Buyer Problem with Consideration of Transportation Quantity Discount |
| title_fullStr | Multi-Item Single-Vendor-Single-Buyer Problem with Consideration of Transportation Quantity Discount |
| title_full_unstemmed | Multi-Item Single-Vendor-Single-Buyer Problem with Consideration of Transportation Quantity Discount |
| title_short | Multi-Item Single-Vendor-Single-Buyer Problem with Consideration of Transportation Quantity Discount |
| title_sort | multi item single vendor single buyer problem with consideration of transportation quantity discount |
| topic | Vendor-Buyer Problem Transportation Quantity Discount LTL Incremental Discount TL Discount |
| url | http://hdl.handle.net/1721.1/29832 |
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