Skip to main content

Lund University Publications

LUND UNIVERSITY LIBRARIES

Sustainable Multi-echelon Inventory Control with Shipment Consolidation and Volume Dependent Freight Costs,

Axsäter, Sven LU ; Marklund, Johan LU and Stenius, Olle LU (2018) In European Journal of Operational Research 267(3). p.904-916
Abstract
This paper provides exact analysis of a model for sustainable control of a one-warehouse-N-retailer inventory system with time based shipment consolidation. The model is motivated by discussions with industry, and involves the possibility to reserve intermodal transportation capacity in combination with truck transports available on demand. Inventories are reviewed continuously while shipments from the warehouse are consolidated for groups of retailers and dispatched periodically. A key result is the derivation of the probability mass functions for the number of units on each shipment. This allows for realistic volume dependent freight cost structures and transportation emissions to be included in the model. We show how to jointly optimize... (More)
This paper provides exact analysis of a model for sustainable control of a one-warehouse-N-retailer inventory system with time based shipment consolidation. The model is motivated by discussions with industry, and involves the possibility to reserve intermodal transportation capacity in combination with truck transports available on demand. Inventories are reviewed continuously while shipments from the warehouse are consolidated for groups of retailers and dispatched periodically. A key result is the derivation of the probability mass functions for the number of units on each shipment. This allows for realistic volume dependent freight cost structures and transportation emissions to be included in the model. We show how to jointly optimize the reorder levels, shipment intervals and capacity reservation quantities to minimize the total expected costs. Transportation emissions are taken into consideration by use of a side constraint or by introducing emissions costs. A numerical example illustrates how the model can be used for evaluating the cost impact of reducing transportation emissions. The analysis is applicable to both single- and multi-item systems. (Less)
Please use this url to cite or link to this publication:
author
; and
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
European Journal of Operational Research
volume
267
issue
3
pages
904 - 916
publisher
Elsevier
external identifiers
  • scopus:85041112031
ISSN
0377-2217
DOI
10.1016/j.ejor.2017.12.029
language
English
LU publication?
yes
id
56c82166-96d8-4b97-a041-09b1b0fbb144 (old id 4698126)
date added to LUP
2016-04-04 12:54:13
date last changed
2021-10-06 03:09:41
@article{56c82166-96d8-4b97-a041-09b1b0fbb144,
  abstract     = {This paper provides exact analysis of a model for sustainable control of a one-warehouse-N-retailer inventory system with time based shipment consolidation. The model is motivated by discussions with industry, and involves the possibility to reserve intermodal transportation capacity in combination with truck transports available on demand. Inventories are reviewed continuously while shipments from the warehouse are consolidated for groups of retailers and dispatched periodically. A key result is the derivation of the probability mass functions for the number of units on each shipment. This allows for realistic volume dependent freight cost structures and transportation emissions to be included in the model. We show how to jointly optimize the reorder levels, shipment intervals and capacity reservation quantities to minimize the total expected costs. Transportation emissions are taken into consideration by use of a side constraint or by introducing emissions costs. A numerical example illustrates how the model can be used for evaluating the cost impact of reducing transportation emissions. The analysis is applicable to both single- and multi-item systems.},
  author       = {Axsäter, Sven and Marklund, Johan and Stenius, Olle},
  issn         = {0377-2217},
  language     = {eng},
  month        = {06},
  number       = {3},
  pages        = {904--916},
  publisher    = {Elsevier},
  series       = {European Journal of Operational Research},
  title        = {Sustainable Multi-echelon Inventory Control with Shipment Consolidation and Volume Dependent Freight Costs,},
  url          = {http://dx.doi.org/10.1016/j.ejor.2017.12.029},
  doi          = {10.1016/j.ejor.2017.12.029},
  volume       = {267},
  year         = {2018},
}