A cost optimization model for intra-shipment in a supply chain

Henry Lau

    Research output: Chapter in Book / Conference PaperChapter

    Abstract

    In this research, a decision model is developed aiming to optimize the costs relating to the shipment of goods from one or more suppliers to the wholesaler which has received order placed by customers. The various suppliers have a variety of purchase prices for the goods and they also have varying delivery lead times. Moreover, the wholesaler is also allowed to consider to purchase the goods from other wholesalers which belong to the same organization (known as intra-shipment) and normally with a relatively higher price than the suppliers. Due to the immediate availability of goods in store, it is assumed that there is zero lead time for delivery. As such, the supplier needs to make a decision based on the computation of all the costs involved and identifies and optimum arrangement that optimize the costs. The model to be developed in this paper is able to provide expertise advice to support the decision to be made by the wholesaler, taking into consideration all the expected costs and achieve the minimization of total logistics costs.
    Original languageEnglish
    Title of host publicationSupply Chain Management: Practices, Applications and Challenges
    EditorsMd. Mamun Habib
    Place of PublicationU.S.
    PublisherNova
    Pages41-58
    Number of pages18
    ISBN (Electronic)9781634840972
    ISBN (Print)9781634840965
    Publication statusPublished - 2016

    Keywords

    • business logistics
    • inventory control
    • materials management
    • supply chain management

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