Title: Single-source, single-destination, multi product EOQ model with quantity discount incorporating partial/full truckload policy
Authors: Sandhya Bajaj; P.C. Jha; K.K. Aggarwal
Addresses: Department of Operational Research, Faculty of Mathematical Sciences, University of Delhi, Delhi – 110007, India ' Department of Operational Research, Faculty of Mathematical Sciences, University of Delhi, Delhi – 110007, India ' Department of Operational Research, Faculty of Mathematical Sciences, University of Delhi, Delhi – 110007, India
Abstract: Supply chain is the sequence of business processes and activities from suppliers through customers that provide products, services and information to achieve customer satisfaction, i.e., a chain that can quickly respond to customer's requirement. Integration of different entities in the supply chain is an important way to gain competitive advantage and customer satisfaction as it lowers the supply chain cost. In the present study mathematical models are developed to compute optimal order for integrated inventory-transportation problem with two modes of transportation namely, truck load (TL) and less-than-truckload (LTL) carriers by introducing all unit and incremental quantity discount structure into analysis. Finite planning horizon and dynamic demand is assumed to make ordering decisions. A case is provided to testify and validate the procedure.
Keywords: supply chain management; SCM; full truckload; partial truckload; less-than-truckload; quantity discount; EOQ models; economic order quantity; mathematical modelling; finite planning horizon; dynamic demand; ordering decisions.
International Journal of Business Performance and Supply Chain Modelling, 2013 Vol.5 No.2, pp.198 - 220
Published online: 24 Apr 2013 *Full-text access for editors Access for subscribers Purchase this article Comment on this article