Applications of Supply Chain Management and E-Commerce by Pardalos P.M., Hearn D.W., Geunes J. PDF

By Pardalos P.M., Hearn D.W., Geunes J.

ISBN-10: 0387233911

ISBN-13: 9780387233918

This quantity is appropriate for researchers in provide chain administration, e-business, and utilized operations learn in addition to graduate scholars in those and different similar disciplines. it should even be of curiosity to practitioners in provide chain administration and e-business with pursuits in operations managements and operations examine.

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Example text

Qe denotes the dispatch quantity. 5) is a time-based dispatch policy where an outbound dispatch is made every T e time periods. However, since demand IS determmlstlc, the tlme-oased dIspatch pohcy wIth parameter T; is equivalent to the quantity-based dispatch policy with parameter Qe = DTe Unfortunately, this simplifying property does not hold for stochastic demand problems Suppose that K; denotes the fixed cost of a replemshment, c; denotes the unit procurement cost; K; denotes the fixed cost of dispatching a truck; h denotes the mventory carrymg cost per umt per umt of tlme, w denotes the customer waiting cost per unit per umt of time, and C(n, T e ) denotes the long-run average cost per umt of time.

Although the above function is not jointly convex in nand T e , by usmg first order optimality conditions, we can show that It has a umque mmimum. We can also 28 APPLICATIONS OF SCM AND E-COMMERCE RESEARCH obtam closed form expressions for optimal nand T; values We define no = and we let (n*, T;) denote the global mmumzer of C (n, Tc ) If w ::::: h, then Otherwise, n* is either lnoJ or rnol dependmg on which one yields a lower value of C (n, T c ( n)) where Dn[h(n - 1) + w]· Once n* and T; are computed, the optimal inventory-replenishmentcycle length, the replenishment quantity, and the dispatch quantity are computed usmg the basic relations T; = nTc, Qr = D'Ii , and Qc = DTc The above result Implies that if the cost of vlaitmg 18 less than the cost of holding, then there is no incentive to carry mventory at the vendor's warehouse, and, hence, it IS operated as a cross-docking terminal.

Tt) Undel the optllnal paltcy, tf thEfe tS more than one shzpmentconsolulaium-cucle unihiti a replemshstieni-cucle, then the last shipmeni-cotisolulaium-cucle 2S the longest one. It follows that each replemshment-cycle consists of n shipment-consolidation-cycles of length T I and one last shipment-consolidation-cycle of length T2 where T 1 < T2 Hence, T, - nT1 + T 2 so that each replenishment cycle consists of n + 1 shipment-consolidation-cycles where n = 0,1, ... Based on these results, the average annual total cost can be expressed as a function of n, T I , and T r .

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Applications of Supply Chain Management and E-Commerce Research by Pardalos P.M., Hearn D.W., Geunes J.

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