Int. J. of Logistics Systems and Management   »   2009 Vol.5, No.3/4

 

 

Title: Integration of inventory and transportation decisions in decentralised supply chains

 

Author: Marc Andre Viau, Martin Trepanier, Pierre Baptiste

 

Addresses:
Centre interuniversitaire de recherche sur les reseaux d
entreprise, le transport et la logistique (CIRRELT), Ecole Polytechnique, P.O. Box 6079, station Centre-Ville, Montreal, H3C 3A7 Quebec, Canada.
Centre interuniversitaire de recherche sur les reseaux d
entreprise, le transport et la logistique (CIRRELT), Ecole Polytechnique, P.O. Box 6079, station Centre-Ville, Montreal, H3C 3A7 Quebec, Canada.
Centre interuniversitaire de recherche sur les reseaux d
entreprise, le transport et la logistique (CIRRELT), Ecole Polytechnique, P.O. Box 6079, station Centre-Ville, Montreal, H3C 3A7 Quebec, Canada; Groupe d
etudes et de recherche en analyse des decisions (GERAD) Ecole Polytechnique, P.O. Box 6079, station Centre-Ville, Montreal, H3C 3A7 Quebec, Canada

 

Abstract: In decentralised supply chains, lack of visibility, long delivery delays and complex transportation networks make it difficult to integrate inventory control with other logistics activities. However, because of the impact of stock turnover on just-in-time operations, inventory control has to be considered in the global optimisation of the supply chain. In the literature, transportation and inventory control decisions are seldom modelled together, because minimising transportation costs and increasing inventory turns are two contradictory objectives. This paper addresses this global optimisation problem. It presents a Decision Support System (DSS) that estimates logistics activities in a decentralised supply chain by integrating inventory control and transportation operations. Delivery frequencies and phases are the decision variables used to study the behaviour of the logistics system.

 

Keywords: supply chain management; SCM; inbound logistics; inventory control; transportation operations; routing; global optimisation; DSS; decision support systems; decentralised supply chains; transport networks; stock turnover; just-in-time; JIT operations.

 

DOI: 10.1504/IJLSM.2009.022498

 

Int. J. of Logistics Systems and Management, 2009 Vol.5, No.3/4, pp.249 - 272

 

Available online: 10 Jan 2009

 

 

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