A consolidated delivery policy of multiple suppliers for a single buyer Online publication date: Fri, 01-May-2009
by Taebok Kim, Suresh Kumar Goyal
International Journal of Procurement Management (IJPM), Vol. 2, No. 3, 2009
Abstract: The development of a well-structured supply chain should simultaneously take into account both inventory-related costs and transportation costs to minimise the overall operating cost. A buyer's lot-sizing decision affects all suppliers' inventory and transportation costs as well as its own operating cost. First of all, it is valuable to perform a structured analysis dealing with the conflicts between a buyer and a group of suppliers. Secondly, the coordination issue among the suppliers should be dealt with. The purpose of this study is to investigate how the transportation cost affects the joint lot-sizing policy in a multiple-supplier-single-buyer supply chain. In this study, it is assumed that the transportation cost is proportional to the fleet size utilised to deliver the buyer's requested order quantity. We first model the joint decision-making problem, develop the solution procedure and then finally propose the profit-sharing mechanism.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Procurement Management (IJPM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook