The joint replenishment and freight consolidation of a warehouse in a supply chain

We have developed joint replenishment and consolidated freight delivery policies for a third party warehouse that handles multiple items, which have deterministic demand rates in a supply chain. Two policies are proposed and mathematical models are developed to obtain the optimal parameters for the proposed policies. Four efficient algorithms are presented to solve the mathematical models for the two policies. The performances of the two policies with the parameters obtained from the proposed algorithms are then compared with the common cycle approach for 1600 randomly generated problems. The results show the robust performance of the proposed algorithm for both policies.

[1]  E. Silver.  A Simple Method of Determining Order Quantities in Joint Replenishments Under Deterministic Demand , 1976 .

[2]  Meir J. Rosenblatt,et al.  An Improvement of Silver's Algorithm for the Joint Replenishment Problem , 1983 .

[3]  Ilkyeong Moon,et al.  The joint replenishment and delivery scheduling of the one-warehouse, n-retailer system , 2008 .

[4]  S. Viswanathan,et al.  A New Optimal Algorithm for the Joint Replenishment Problem , 1996 .

[5]  Z. Michalewicz,et al.  A comparison between genetic algorithms and the RAND method for solving the joint replenishment problem , 2000 .

[6]  David F. Pyke,et al.  Inventory management and production planning and scheduling , 1998 .

[7]  B. C. Cha,et al.  The joint replenishment problem with resource restriction , 2006, Eur. J. Oper. Res..

[8]  Frank T. Shu.  Economic Ordering Frequency for two Items Jointly Replenished , 1971 .

[9]  R.E. Wildeman,et al.  An efficient optimal solution method for the joint replenishment problem , 1997 .

[10]  Meir J. Rosenblatt,et al.  On the economic ordering quantity for jointly replenished items , 1991 .

[11]  S. K. Goyal.  Analysis of Joint Replenishment Inventory Systems with Resource Restriction , 1975 .

[12]  B. C. Cha,et al.  The joint replenishment problem with quantity discounts under constant demand , 2005, OR Spectr..

[13]  R. Hall.  CONSOLIDATION STRATEGY : INVENTORY, VEHICLES AND TERMINALS , 1987 .

[14]  Qing Li.  Solving the multi-buyer joint replenishment problem with the RAND method , 2004, Comput. Ind. Eng..

[15]  M. V. Eijs.  A Note on the Joint Replenishment Problem under Constant Demand , 1993 .

[16]  S. Goyal.  Determination of Optimum Packaging Frequency of Items Jointly Replenished , 1974 .

[17]  Sila Çetinkaya,et al.  Optimal outbound dispatch policies: Modeling inventory and cargo capacity , 2002 .