Title: Factoring in vehicle capacity in multi-nomenclature EOQ-models

Authors: Victoria Gerami; Ivan Shidlovskiy

Addresses: Faculty of Business and Management, National Research University Higher School of Economics, 20 Myasnitskaya Ulitsa, Moscow 101000, Russia ' Faculty of Business and Management, National Research University Higher School of Economics, 20 Myasnitskaya Ulitsa, Moscow 101000, Russia

Abstract: For the multi-nomenclature EOQ-models the analysis of feasibility of deliveries using several vehicles factoring in vehicle capacity is conducted. It is proved that such deliveries with an increase in the number of vehicles that simultaneously used for a single delivery cannot be effective, if a discount is not given for the cost of such a delivery. The necessary and sufficient condition that sets the threshold level of the discount, at which the deliveries by several vehicles are able to compete with the traditional solutions, is established. The cases of numerical calculations are presented in the article.

Keywords: transportation; EOQ-models; economic order quantity; EOQ; vehicle capacity; inventory management; multi-nomenclature models; supply chain management; SCM; deliveries using several vehicles; cost optimisation; logistics; logistics systems.

DOI: 10.1504/IJLSM.2019.100112

International Journal of Logistics Systems and Management, 2019 Vol.33 No.2, pp.167 - 189

Available online: 04 Jun 2019 *

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