Abstract
This paper presents a mathematical model for two-stage planning of transportation and inventory for many sorts of products (multi-commodity). The situation considered in this paper, which happens in a local furniture manufacturing firm, is that the total supply in origins exceeds the current-stage's total demand from all destinations (markets). Therefore, the problem is how to arrange the current-stage's shipping in consideration of next-stage's (that is, future's) inventory in both origins and destinations. A mathematical model is proposed for the problem with the objective of minimizing the total cost of both shipping and inventory for all products within two stages. Meanwhile, since the next-stage's shipping costs usually are unknown, this paper presents a new concept of rational unit shipping cost: a forecasted average cost with weight of nextstage's shipping amount. Finally, a numerical example extracted from the furniture manufacturing company with 4 origins, 4 destinations and 4 commodities is illustrated in the paper.
| Original language | English |
|---|---|
| Pages (from-to) | 278-285 |
| Number of pages | 8 |
| Journal | International Journal of Industrial Engineering : Theory Applications and Practice |
| Volume | 15 |
| Issue number | 3 |
| Publication status | Published - 1 Sept 2008 |
Keywords
- Inventory
- Multi-commodity
- Network programming
- Rational unit shipping cost
- Transportation
ASJC Scopus subject areas
- Industrial and Manufacturing Engineering