Stochastic models for the dispatch of consolidated shipments

Çetinkaya, Sıla; Bookbinder, James H.

doi:10.1016/s0191-2615(02)00060-7

Cited by 101 publications

(59 citation statements)

References 14 publications

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“…This resulted in a 13% increase in the overall distance travelled (from 8,858km to 10,007km). Instead the weekly volume of goods carried by articulated and rigid truck and vans increased by 350% during busy periods (from 149.2m 3 to 529.9m 3 ). Most of it (96.3%, 510.1m 3 ) was carried by rigid vehicles.…”

Section: Voluntary Participationmentioning

confidence: 99%

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Urban Freight Consolidation Centers

Triantafyllou

Cherrett

Browne

2014

Transportation Research Record: Journal of the Transportation R

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(Body text = 6,218 words including abstract = 244 words), 4 figures (1,000 words), 1 table (250 words), Total = 7,468) 29 References Paper submitted for publication in Transportation Research Record ABSTRACTIn recent years, traditional urban distribution systems have undergone major structural changes as a result of the increasing power of customers demanding greater variety of quality products at a low cost. This has increased the competition between businesses and at the same time more complicated and longer supply chains have emerged as a result of the globalization of many businesses in their search for low cost production locations and access to new skills. In response hub-and-spoke systems are increasingly used to deal with product flows from numerous origins and to many destinations. As a result, a growing number of studies examine the establishment of various forms of inter-modal transshipment centers to minimize the road use in city centers and support the frequent and rapid replenishment of goods at retail and catering outlets. To this end, this paper examines the establishment of a consolidation center servicing nearly 100 businesses that operate in an urban shopping mall in Southampton U.K. Through the review of numerous existing U.K. and international consolidation schemes and the examination of their operational characteristics, this paper aims to identify potential strengths, weaknesses and risks that would impact its operation. Various operational scenarios considering different business take-up combinations, vehicle delivery mixes, fill rates and back-load practices are examined to elucidate the potential transport and environmental effects of the consolidation scheme. To accurately quantify and verify these effects, a multi-stage analysis framework is developed including data collection, map routing, emissions assessment and scenarios building activities.

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Section: Voluntary Participationmentioning

confidence: 99%

“…The maximum volumetric capacity of an articulated truck was considered equal to 80m 3 , a rigid truck 60m 3 , a van 10m 3 and an unknown type of vehicle 30m 3 .…”

Section: Stage 4: Scenarios Analysis Regarding the Operation Of Southmentioning

confidence: 99%

Urban Freight Consolidation Centers

Triantafyllou

Cherrett

Browne

2014

Transportation Research Record: Journal of the Transportation R

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“…Cetinkaya and Bookbinder [25], Chen et al [26], Cetinkaya and Lee [27], Moon et al [28], Ching and Tai [29], and Cetinkaya et al [23] have developed the optimization models for shipment consolidation. For the demand arrival following a Poisson process, Cetinkaya and Bookbinder [25], and Chen et al [26] have developed the optimal quantity based policy.…”

Section: Literature Reviewmentioning

confidence: 99%

“…For the demand arrival following a Poisson process, Cetinkaya and Bookbinder [25], and Chen et al [26] have developed the optimal quantity based policy. Cetinkaya and Lee [27] present an optimization model for coordinating inventory and transportation decisions at an outbound distribution warehouse that serves a group of customers located in a given market.…”

Section: Literature Reviewmentioning

confidence: 99%

Shipment Consolidation Policy under Uncertainty of Customer Order for Sustainable Supply Chain Management

et al. 2017

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Abstract:With increasing concern over the environment, shipment consolidation has become one of a main initiative to reduce CO 2 emissions and transportation cost among the logistics service providers. Increased delivery time caused by shipment consolidation may lead to customer's order cancellation. Thus, order cancellation should be considered as a factor in order uncertainty to determine the optimal shipment consolidation policy. We develop mathematical models for quantity-based and time-based policies and obtain optimality properties for the models. Efficient algorithms using optimal properties are provided to compute the optimal parameters for ordering and shipment decisions. To compare the performances of the quantity-based policy with the time-based policy, extensive numerical experiments are conducted, and the total cost is compared.

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“…The existing analytical models for computing the parameters of pure and integrated policies (Ç etinkaya and Lee, 2000, Axsäter, 2001, Ç etinkaya and Bookbinder, 2003 are aimed at developing quantitative results for managerial justification of shipment consolidation and VMI, and they only consider the special case where the demand follows a Poisson process with unit arrivals. Although those models lead to easy-to-understand analytical results, they have a limited application domain due to the simplifying assumptions about the characteristics of the underlying demand processes.…”

Section: Introduction and Related Literaturementioning

confidence: 99%

A stochastic model for joint inventory and outbound shipment decisions

2008

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In this paper, we consider a vendor realizing a sequence of random order arrivals in random sizes. The vendor has the autonomy to hold/consolidate small orders until an economical dispatch quantity accumulates. Consequently, the actual inventory requirements at the vendor are in part determined by the parameters of the shipment release policy in use. In this context, we investigate the impact of shipment consolidation on the expected long-run average cost by simultaneously computing the optimal order quantity for inventory replenishment at the vendor and the optimal dispatch quantity for outbound shipments. Since we consider the case where demand follows a general stochastic bulk arrival process, obtaining exact analytical expressions for some key operating characteristics of the cost function is intractable. Hence, we provide easy-to-compute approximations which enable efficient numerical solutions for the problem. We also investigate: (i) the cases where consolidated shipments are preferred over immediate deliveries; (ii) the sensitivity of optimal integrated policy variables to demand/cost parameters; (iii) the potential savings that can be obtained by shipment consolidation; and (iv) the tradeoffs between the waiting time induced by shipment consolidation and costs saved. Our results provide insights into the impact of outbound transportation operations on inventory replenishment decisions and outbound distribution system design. Moreover, numerical testing suggests that significant cost savings (up to 57%) are possible with shipment consolidation.

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Stochastic models for the dispatch of consolidated shipments

Cited by 101 publications

References 14 publications

Urban Freight Consolidation Centers

Urban Freight Consolidation Centers

Shipment Consolidation Policy under Uncertainty of Customer Order for Sustainable Supply Chain Management

A stochastic model for joint inventory and outbound shipment decisions

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