Logistics scheduling to minimize inventory and transport costs

Research output: Journal article publicationJournal articleAcademic researchpeer-review

35 Citations (Scopus)

Abstract

We study a logistics scheduling problem where a manufacturer receives raw materials from a supplier, manufactures products in a factory, and delivers the finished products to a customer. The supplier, factory and customer are located at three different sites. The objective is to minimize the sum of work-in-process inventory cost and transport cost, which includes both supply and delivery costs. For the special case of the problem where all the jobs have identical processing times, we show that the inventory cost function can be unified into a common expression for various batching schemes. Based on this characteristic and other optimal properties, we develop an O(n) algorithm to solve this case. For the general problem, we examine several special cases, identify their optimal properties, and develop polynomial-time algorithms to solve them optimally.
Original languageEnglish
Pages (from-to)266-273
Number of pages8
JournalInternational Journal of Production Economics
Volume121
Issue number1
DOIs
Publication statusPublished - 1 Sep 2009

Keywords

  • Algorithms
  • Inventory and transportation
  • Logistics scheduling

ASJC Scopus subject areas

  • Industrial and Manufacturing Engineering
  • Business, Management and Accounting(all)
  • Management Science and Operations Research
  • Economics and Econometrics

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