Single-source, single-destination, multi product EOQ model with quantity discount incorporating partial/full truckload policy
by Sandhya Bajaj; P.C. Jha; K.K. Aggarwal
International Journal of Business Performance and Supply Chain Modelling (IJBPSCM), Vol. 5, No. 2, 2013

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.

Online publication date: Wed, 24-Apr-2013

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