Nonlinear freight costs in the EOQ problem

Aucamp, Donald C.

doi:10.1016/0377-2217(82)90011-x

Cited by 49 publications

(32 citation statements)

References 4 publications

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“…Their focus is to find the optimal replenishment quantities to minimize the sum of transportation and inventory related costs. See, for example, Aucamp (1982), Lee (1986), Lee (1989), Tersine and Barman (1994), Çetinkaya and Lee (2002), Jaruphongsa et al (2005), Mendoza and Ventura (2008). The papers in the latter body of research, study the pricing of transportation services within the context of fleet management.…”

Section: Introductionmentioning

confidence: 99%

“…While many of the papers in this area consider the problem in a single echelon setting (e.g., Aucamp, 1982;Lee, 1986;Tersine and Barman, 1994;Shinn et al, 1996;Burwell et al, 1997;Hwang et al, 1990;Jaruphongsa et al, 2005;Mendoza and Ventura, 2008;Rieksts and Ventura, 2008;Toptal, 2009), relatively recent papers model and solve the replenishment problems of multiple echelons under transportation considerations (see Hoque and Goyal, 2000;Çetinkaya and Lee, 2002;Chan et al, 2002;Toptal et al, 2003;Toptal and Çetinkaya, 2006;Rieksts and Ventura, 2010).…”

Section: Introductionmentioning

confidence: 99%

“…Aucamp (1982), Lee (1986), Çetinkaya and Lee (2002), Toptal et al (2003), Toptal and Çetinkaya (2006) are examples of papers that assume a single mode of transportation, in the form of a truckload shipment. They use a multiple set-ups structure to model this form of shipment.…”

Section: Introductionmentioning

confidence: 99%

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Transportation pricing of a truckload carrier

Toptal

Bingöl

2011

European Journal of Operational Research

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a b s t r a c tFreight transportation is a major component of logistical operations. Due to the increase in global trade, fierce competition among shippers and raising concerns about energy, companies are putting more emphasis on effective management and usage of transportation services. This paper studies the transportation pricing problem of a truckload carrier in a setting that consists of a retailer, a truckload carrier and a less than truckload carrier. In this setting, the truckload carrier makes his/her pricing decision based on previous knowledge on the less than truckload carrier's price schedule and the retailer's ordering behavior. The retailer then makes a determination of his/her order quantity through an integrated model that explicitly considers the transportation alternatives, and the related costs (i.e., bimodal transportation costs) and capacities. In the paper, the retailer's replenishment problem and the truckload carrier's pricing problem are modeled and solved based on a detailed analysis. Numerical evidence shows that the truckload carrier may increase his/her gainings significantly through better pricing and there is further opportunity of savings if the truckload carrier and the retailer coordinate their decisions.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Transportation pricing of a truckload carrier

Toptal

Bingöl

2011

European Journal of Operational Research

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“…This can bring competitive advantage to companies, specifically to those with functional products and for which minimization of costs is a major priority. Recognizing this benefit, several studies in single echelon lot sizing literature in the 1980s and the early 1990s accounted for transportation costs [3,18,25]. This issue has recently regained attention in supply chain research, due to an increasing trend in practice to outsource logistical activities through third party companies.…”

Section: Introduction and Literaturementioning

confidence: 99%

“…In another form of freight cost structure, i.e., TL transportation, a fixed amount is charged for each additional truck/container deployed. Aucamp [3] studies a special case in which the per-truck cost is constant, independent of the order quantity. Lee [18] generalizes Aucamp's [3] work to consider discounted per-truck costs for larger replenishment quantities.…”

Section: Introduction and Literaturementioning

confidence: 99%

Replenishment decisions under an all-units discount schedule and stepwise freight costs

Toptal

2009

European Journal of Operational Research

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a b s t r a c tIn this study, we analyze the replenishment decisions under a general replenishment cost structure that includes stepwise freight costs and all-units quantity discounts. We first formulate a general model that accounts for a larger class of problems and prove several useful properties of the expected profit function. We later utilize these properties to develop a computational solution approach to find the optimal order quantity. As an application of the general results, we study the replenishment decisions in the single-period, i.e., the Newsboy, problem considering several scenarios that model the cost considerations either for the buyer or for both the buyer and the vendor.

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Production planning of Pakistan Tobacco Company (PTC) using quantitative and multiple‐criteria decision analysis—A case in‐point

Yousaf

Ali

Sabir

et al. 2017

Multi Criteria Decision Anal

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The main purpose of this paper is to improve the production planning of Pakistan Tobacco Company by selecting the most preferred brand and subsequently generating maximum profit from it. As the company produces a variety of products, the technique of multi criteria decision making is used to select the most preferred brand. To generate the maximum output from the preferred brand, different methods of qualitative managerial analysis are used, which include decision analysis to decide “why and where” the manufacturing should be carried out, transportation model to minimize the logistics cost while meeting the demand, and linear programming technique to maximize the profit generated in 2014–2015. The result obtained from analytical hierarchy process shows that the most preferred brand of the company with respect to price, quality, and comfort is John Player Gold Leaf. The decision analysis explains that this brand should be manufactured in the Jhelum factory of the company as it is more cost‐effective to produce and there is a high availability of resources. Transportation model minimizes the logistics cost of this brand from the 2 factories while meeting the demand at each provinces, central warehouse. Linear programming contributes in generating a profit of 32.738 billion PKR with an amount of 0.35 million PKR, which is more than that of the current profit of the company in the year. These results will allow the top management of the company to take corrective decisions well in time, gain a core competency in cost reduction, and make the supply chain process more efficient.

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Nonlinear freight costs in the EOQ problem

Cited by 49 publications

References 4 publications

Transportation pricing of a truckload carrier

Transportation pricing of a truckload carrier

Replenishment decisions under an all-units discount schedule and stepwise freight costs

Production planning of Pakistan Tobacco Company (PTC) using quantitative and multiple‐criteria decision analysis—A case in‐point

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