Multi-level inventory management decisions with transportation cost consideration

A. Madadi, M.E. Kurz, J. Ashayeri

Research output: Contribution to journalArticleScientificpeer-review

32 Citations (Scopus)

Abstract

In this article we address specific inventory management decisions with transportation cost consideration in a multi-level environment consisting of a supplier–warehouse–retailers. We develop two models – namely, decentralized ordering model and centralized ordering model to investigate the effect of collective ordering by retailers on the total inventory cost of the system. A numerical study shows that the proposed model is robust and generates reasonable cost savings. The models have potential in several multi-level applications such as fresh or frozen food delivery to stores of different supermarkets or the supply of medicine to a number of hospitals from a wholesaler.
Original languageEnglish
Pages (from-to)719-734
JournalTransportation Research Part E: Logistics and Transportation Review
Volume46
Issue number5
Publication statusPublished - 2010

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