Integrated optimization of safety stock and transportation capacity

Tempelmeier, Horst; Bantel, Oliver

doi:10.1016/j.ejor.2015.05.069

Cited by 15 publications

(4 citation statements)

References 22 publications

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“…Trade parties develop a strategic alliance to maximize profit and decrease costs, while exchanging information to achieve greater advantages. Numerous authors have recently explored an integrated SC system in various problem situations (see [1][2][3]). Das et al [4] discussed the random credit period within their model.…”

Section: Literature Reviewmentioning

confidence: 99%

Sustainable Supply Chain System for Defective Products with Different Carbon Emission Strategies

Mala¹,

Palanivel²,

Priyan

et al. 2022

Sustainability

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Many nations have created ecological policies and regulations to prevent industries from emitting excessive amounts of carbon emissions into the environment. While significant progress has been achieved in the direction of sustainable growth, many nations still rely on nonrenewable energy sources. This study explores the viability of investing in green technology to achieve the optimal decisions (lot sizes, lead time, and green investment amount) in a two-echelon supply chain system by considering human error with two carbon emission strategies: carbon taxes and limited carbon emissions. It entails the inspection of every shipped lot by the buyer to identify defective products that could have resulted from the vendor’s production process. We show a constrained non-linear program and design a calculus-optimization technique to solve it. The methodology used in this research is the quantitative method, which is based on the principles of operations research, and the models are built on mathematically oriented inventory theory. The results imply that an outsized ecological carbon footprint can be reduced without compromising customer service by designing optimal inventory strategies. The findings also confirm that green investment is the greatest economical method for reducing carbon emissions and system costs.

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Section: Literature Reviewmentioning

confidence: 99%

Sustainable Supply Chain System for Defective Products with Different Carbon Emission Strategies

Mala¹,

Palanivel²,

Priyan

et al. 2022

Sustainability

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“…Equation (12) defines the time of the vehicle waiting at retailer i. (13) and (14) respectively indicate the value range of i, j, and k.…”

Section: Mathematical Formulationmentioning

confidence: 99%

“…Geunes and Zeng [12] extended the research of Ernst and Pyke [11], modeling how warehouse management demonstrating how inventory impact on transportation cost and how to set stock level to lower total cost of inventory and transportation, concluding that the relationship of inventory and transportation cost could help to determine how to deal with demand shortage from the customers. Tempelmeier and Bantel [13] developed a multi-objective model composed of single supplier and multiple customers optimizing inventory and transportation jointly under stochastic demand. They discussed the conditions of both inhouse and outsourcing transportation.…”

Section: Introductionmentioning

confidence: 99%

Integrated Inventory-Transportation Problem in Vendor-Managed Inventory System

Teng

Zhang

et al. 2019

IEEE Access

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The paper presents a two-echelon inventory-transportation problem in Vendor Managed Inventory (VMI) system. We consider a distribution system composed with single supplier, single distribution center and multiple retailers. Single kind of products are required to deliver from the manufacturer through distribution center to the retailers within soft time window. The objective of the problem is to minimize total logistics cost in the distribution network, including inventory cost, distribution cost, and time penalty cost. The upper echelon model focuses on minimizing inventory cost while the lower echelon model on vehicle routing problem. A mixed algorithm is designed to solve the problem with simulated annealing and ant colony with local search. The solution of upper and lower echelon model are substituted into each other based on the mixed algorithm step by step to get the optimization solutions. Computational experiments are executed to compare the performance of independent and integrated inventory-transportation optimization from the dimension of to verify the effectiveness of the model and the algorithms. INDEX TERMS Integrated inventory-transportation, vendor-managed inventory, stimulated annealing, ant colony, local search.

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“…In addition, the review period can be optimized and not assumed as a known parameter. Other authors have integrated the determination of SS levels with expediting and transport decisions (Tempelmeier and Bantel 2015;Yadollahi et al 2017;Zahraei and Teo 2017).…”

Section: Introductionmentioning

confidence: 99%

Determination of dynamic safety stocks for cyclic production schedules

Bahroun

Belgacem

2019

Oper Manag Res

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Safety stocks are necessary to accommodate supply or demand uncertainties. Typically, safety stocks are held constant throughout the management horizon. In this paper, we study the determination of dynamic safety stock levels under cyclic production schedules. Currently, companies often operate according to contract orders with fixed and cyclic delivery dates and varying quantities. In this context, companies have attempted to implement cyclic production modes for their cyclic delivery requirements. Indeed, cyclic production scheduling has many benefits, such as respecting just-in-time principles by synchronising production with demand and improving shop floor control. The objectives of this paper are twofold: (1) to propose a new dynamic approach for determining safety stock levels that is adapted to cyclic production and (2) to demonstrate the limitations of traditional approaches under nonstationary demands. Our dynamic approach is based on modelling a repetitive production sequence comprising many manufacturing orders. Our model estimates the dynamic safety stock levels necessary to accommodate cyclic manufacturing orders with uncertain quantities and start dates using a Monte Carlo simulation approach. For the case in which all demands follow normal probability distributions, we validated the results of our simulation model by comparing them to numerically approximated theoretical results. We then compared the proposed dynamic simulation approach with the traditional approach. The results demonstrate that the dynamic approach is more efficient in terms of simultaneously minimizing the required safety stocks and improving the service level by decreasing the probability of stock outs. Finally, we applied our simulation approach to a case in which all demands follow uniform probability distributions.

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Integrated optimization of safety stock and transportation capacity

Cited by 15 publications

References 22 publications

Sustainable Supply Chain System for Defective Products with Different Carbon Emission Strategies

Sustainable Supply Chain System for Defective Products with Different Carbon Emission Strategies

Integrated Inventory-Transportation Problem in Vendor-Managed Inventory System

Determination of dynamic safety stocks for cyclic production schedules

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