Logistics scheduling to minimize the sum of total weighted inventory cost and transport cost

Ji, Min; Fang, Jianxin; Zhang, Wenya; Liao, Lijuan; Cheng, T.C.E.; Tan, Yuanyuan

doi:10.1016/j.cie.2018.04.041

Cited by 19 publications

(6 citation statements)

References 40 publications

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“…The Silver-Meal method was developed by Edward Silver and Harlan Meal based on the cost period [3]. Silver-Meal Algorithm is a heuristic approach to determine the purchase lot size which is relatively easy to use [5,6]. The silver meal heuristic approach is similar to the EOQ approach, but in the calculation, it is based more on the variable cost of the purchasing period and not based on the total demand during the planning horizon [7,8].…”

Section: Silver-meal Algorithmmentioning

confidence: 99%

Ordering Size Optimization of Raw Material to Minimize Inventory Costs using Wagner-Within Algorithm and Silver-Meal Methods

et al. 2021

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Inventory is one of the current assets that can be classified as company assets. But in reality, inventory often turns into an operational problem that can affect the company's overall performance. This problem occurs due to the incorrect determination of the amount of inventory. Both excess and shortage of inventory can lead to cost overruns. This study applies the Wagner Whitin Algorithm and the Silver-Meal method in the lot-sizing process and the ABC (Always Better Control) method in determining the classification of raw materials at PT. X. Using the ABC method, it is known that the ADC-12 Ingot item has a very significant effect to inventory. Inventory optimization using the Wagner Whitin Algorithm and the Silver-Meal method resulted in the optimal frequency of ordering ADC-12 Ingots is 9 times and the total inventory cost is 994,098,000 IDR as well as inventory cost savings of around 18,403,180 IDR or 1.8% of the cost of existing inventory.

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Section: Silver-meal Algorithmmentioning

confidence: 99%

Ordering Size Optimization of Raw Material to Minimize Inventory Costs using Wagner-Within Algorithm and Silver-Meal Methods

et al. 2021

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“…Petraška et al (2017Petraška et al ( , 2018 proposed a methodology, which would allow to deliver heavy or oversized freight to the destination, allocating the least possible amount of funds for infrastructure improvements, choosing the most appropriate mode of transport for this type of freight transportation or using the advantages of multimodal (combined) transport. Ji et al (2018) studied the logistics scheduling problem in the context of a three-stage supply chain where the objective is to minimise the sum of the total weighted inventory cost and transport cost. They analysed the problem using a batching and scheduling model involving both batch supply and batch delivery.…”

Section: Literature Reviewmentioning

confidence: 99%

A Model for Managing Logistics Costs Throughout a Product’s Life Cycle: A Case Study of a Multinational Manufacturing Company

Škerlič

Sokolovskij

2019

Transport

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The goal of the study is to develop a model that focuses on managing logistics costs at all stages of a product’s life cycle. The model includes several different cost components and provides a wider coverage of individual processes, as logistics costs are present in different areas of a company’s operations. The applicability of the proposed method was tested in a multinational company that manufactures furniture fittings on a randomly selected product. The test results provide a theoretical and practical confirmation of the necessity to manage the logistics costs for an individual product, since other models are focused exclusively on the cost optimisation of individual logistics processes. The model therefore complements the existing knowledge and represents a practical tool for logistics professionals that enables more efficient logistics costs planning at an early stage in the development of a product, which can result in the long-term reduction in the total costs of logistics and improve the quality of business processes.

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“…They analyzed the data from test instances and concluded that cooperation between the two can lead to greater cost savings. Ji et al [16] analyzed the problem using a batching and scheduling model involving both batch supply and batch delivery. In this paper, they considered four non-deterministic polynomial (NP)-hard cases that were classified based on whether the arrival and delivery of the goods were individual or not.…”

Section: Literature Reviewmentioning

confidence: 99%

An Optimization Approach to the Low-Frequency Entire Train Formation at the Loading Area

et al. 2019

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It is well known that the shift of transporting bulk cargo from roads to railways is an important measure to reduce carbon emissions of the overall transportation systems. In order to increase the attractiveness of railway transport, companies usually provide some discounts to the customers with great transport demand so that entire trains can be operated. Since the operation of entire trains can reduce the reclassification times of shipments, the expenses of railway operations can be reduced. However, when the volume of shipment is not sufficient, the door-to-door direct transportation (in the railway industry specifically, “door-to-door” means running trains from supplier’s warehouse to customer’s warehouse) of the entire train often leads to a decrease in the frequency of delivery, which increases the average stock of users, thus increasing the inventory cost of users. Therefore, how to balance the pros and cons of the two is exactly the problem to be studied. In this paper, the optimal operation plan is obtained by minimizing the total cost of the stockholding of suppliers and customers, as well as the transportation costs of an entire train and non-direct train. Based on the classic economic order quantity (EOQ) model, a 0-1 integer programming model with the constraint of the maximum stock level is proposed to solve this problem. And an innovative approach is used to calculate the actual average stock of the customer. Finally, the model is validated and its effectiveness is confirmed using a real-world case, which is carried out using data from the China rail system.

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Logistics scheduling to minimize the sum of total weighted inventory cost and transport cost

Cited by 19 publications

References 40 publications

Ordering Size Optimization of Raw Material to Minimize Inventory Costs using Wagner-Within Algorithm and Silver-Meal Methods

Ordering Size Optimization of Raw Material to Minimize Inventory Costs using Wagner-Within Algorithm and Silver-Meal Methods

A Model for Managing Logistics Costs Throughout a Product’s Life Cycle: A Case Study of a Multinational Manufacturing Company

An Optimization Approach to the Low-Frequency Entire Train Formation at the Loading Area

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