Outbound shipment mode considerations for integrated inventory and delivery lot-sizing decisions

  • Authors:
  • Wikrom Jaruphongsa;Sila ÇEtinkaya;Chung-Yee Lee

  • Affiliations:
  • Department of Industrial and Systems Engineering, National University of Singapore, Singapore;Department of Industrial and Systems Engineering, Texas A&M University, College Station, TX 77843-3131, USA;Department of Industrial Engineering and Logistics Management, Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong

  • Venue:
  • Operations Research Letters
  • Year:
  • 2007

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Abstract

We present a two-echelon dynamic lot-sizing model with two outbound delivery modes where one mode has a fixed set-up cost structure while the other has a container-based cost structure. Studying the optimality properties of the problem, we provide a polynomial solution algorithm based on a dynamic programming approach.