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Simultaneous determination of multiproduct batch and full truckload shipment schedules
Journal article   Peer reviewed

Simultaneous determination of multiproduct batch and full truckload shipment schedules

Avijit Banerjee
International journal of production economics, v 118(1), pp 111-117
2009

Abstract

Economic lot scheduling Full truckload shipments Inventory model Supply chain coordination
A fundamental premise of the well-known economic lot-scheduling problem (ELSP) is that the finished products are consumed at continuous rates, i.e. their respective cycle inventories are depleted on the basis of unit transactions. In today's supply chains, however, employing complex distribution networks, finished goods inventories from manufacturing plants are usually shipped in bulk to succeeding stages along the distribution process. Moreover, existing transport economies often tend to favor full truckload (TL), rather that partial or less than truckload (LTL) shipments, for economical movement of such goods. The scenario examined here, however, involves a set of products, for which individual TL shipments are uneconomical. As a remedy, we construct a model for taking advantage of TL rates by combining LTL quantities of the items into a full load. We adopt the common cycle approach for the ELSP, in conjunction with a common replenishment cycle, as a coordination mechanism that is simple to analyze and implement. This is integrated with a periodic full truckload shipping schedule. Such effective coordination of production and shipment schedules is likely to result in a more streamlined supply chain. The concepts developed are illustrated through a simple numerical example.

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15 citations in Scopus

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Web of Science research areas
Engineering, Industrial
Engineering, Manufacturing
Operations Research & Management Science
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