Managing Supply Systems with Partial Information on Shipment Locations
This paper studies a supply system for a retailer who orders a single product from one manufacturer. Orders filled by the manufacturer pass through multiple transportation stages before reaching the retailer. Each stage represents either a physical location or a step in the delivery process. The lea...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
| Published: |
2016
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10356/82773 http://hdl.handle.net/10220/40308 |
| _version_ | 1811677556470972416 |
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| author | Bryan, Nana Srinivasan, Mandyam M. Viswanathan, S. |
| author2 | Nanyang Business School |
| author_facet | Nanyang Business School Bryan, Nana Srinivasan, Mandyam M. Viswanathan, S. |
| author_sort | Bryan, Nana |
| collection | NTU |
| description | This paper studies a supply system for a retailer who orders a single product from one manufacturer. Orders filled by the manufacturer pass through multiple transportation stages before reaching the retailer. Each stage represents either a physical location or a step in the delivery process. The lead time for a new order depends on the location of shipments against prior orders in transit. Shipments are not allowed to cross over in time. Thus, the movement of each shipment depends on the movements of shipments ahead of it and the resulting congestion. The retailer is able to track shipments as they move through the transportation channel. The retailer adopts an ordering policy that minimises the sum of his one-period holding and shortage costs, using available status information of shipments already in transit. The case where practical constraints prevent the retailer from obtaining a complete status of shipments at all stages in the transportation channel is considered. The methodology developed evaluates the value of partial shipment tracking information, and uses it to determine the optimal placement of a limited number of tracking devices. The methodology can also be used to evaluate the cost–benefit of placing additional tracking devices in the supply system. |
| first_indexed | 2024-10-01T02:39:15Z |
| format | Journal Article |
| id | ntu-10356/82773 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T02:39:15Z |
| publishDate | 2016 |
| record_format | dspace |
| spelling | ntu-10356/827732023-05-19T06:44:43Z Managing Supply Systems with Partial Information on Shipment Locations Bryan, Nana Srinivasan, Mandyam M. Viswanathan, S. Nanyang Business School Stochastic processes Markov chain Stochastic lead time Shipment tracking Value of information This paper studies a supply system for a retailer who orders a single product from one manufacturer. Orders filled by the manufacturer pass through multiple transportation stages before reaching the retailer. Each stage represents either a physical location or a step in the delivery process. The lead time for a new order depends on the location of shipments against prior orders in transit. Shipments are not allowed to cross over in time. Thus, the movement of each shipment depends on the movements of shipments ahead of it and the resulting congestion. The retailer is able to track shipments as they move through the transportation channel. The retailer adopts an ordering policy that minimises the sum of his one-period holding and shortage costs, using available status information of shipments already in transit. The case where practical constraints prevent the retailer from obtaining a complete status of shipments at all stages in the transportation channel is considered. The methodology developed evaluates the value of partial shipment tracking information, and uses it to determine the optimal placement of a limited number of tracking devices. The methodology can also be used to evaluate the cost–benefit of placing additional tracking devices in the supply system. Accepted version 2016-03-22T04:44:53Z 2019-12-06T15:05:17Z 2016-03-22T04:44:53Z 2019-12-06T15:05:17Z 2016 Journal Article Bryan, N., Srinivasan, M. M., & Viswanathan, S. (2016). Managing supply systems with partial information on shipment locations. International Journal of Production Research. 0020-7543 https://hdl.handle.net/10356/82773 http://hdl.handle.net/10220/40308 10.1080/00207543.2016.1142132 en International Journal of Production Research © 2016 Taylor & Francis. This is the author created version of a work that has been peer reviewed and accepted for publication by International Journal of Production Research, Taylor & Francis. It incorporates referee’s comments but changes resulting from the publishing process, such as copyediting, structural formatting, may not be reflected in this document. The published version is available at: [http://dx.doi.org/10.1080/00207543.2016.1142132]. 24 p. application/pdf |
| spellingShingle | Stochastic processes Markov chain Stochastic lead time Shipment tracking Value of information Bryan, Nana Srinivasan, Mandyam M. Viswanathan, S. Managing Supply Systems with Partial Information on Shipment Locations |
| title | Managing Supply Systems with Partial Information on Shipment Locations |
| title_full | Managing Supply Systems with Partial Information on Shipment Locations |
| title_fullStr | Managing Supply Systems with Partial Information on Shipment Locations |
| title_full_unstemmed | Managing Supply Systems with Partial Information on Shipment Locations |
| title_short | Managing Supply Systems with Partial Information on Shipment Locations |
| title_sort | managing supply systems with partial information on shipment locations |
| topic | Stochastic processes Markov chain Stochastic lead time Shipment tracking Value of information |
| url | https://hdl.handle.net/10356/82773 http://hdl.handle.net/10220/40308 |
| work_keys_str_mv | AT bryannana managingsupplysystemswithpartialinformationonshipmentlocations AT srinivasanmandyamm managingsupplysystemswithpartialinformationonshipmentlocations AT viswanathans managingsupplysystemswithpartialinformationonshipmentlocations |