The Choice of Different Logistics Policies Considering Transportation and Inventory Costs in a Two-Echelon Distribution System

Pin Lv; Cheng Zheng Ma

doi:10.4028/www.scientific.net/AMM.505-506.902

Paper Titles

The Integrated Optimization of Container Port Logistics System Resources
p.878

A Simulation Based Analysis on Setting Pontoons in a Regional Container Hub Port
p.884

Study on Locating a Master Station of Gas Station
p.894

Measuring the Performance of E-Commerce Logistics System Based on Fuzzy-AHP
p.898

The Choice of Different Logistics Policies Considering Transportation and Inventory Costs in a Two-Echelon Distribution System
p.902

Study of Logistics Park Planning and Design Based on E-Commerce Platform
p.907

Research on Aid Site Choice in Emergency Based on Traffic Preponderance
p.911

Freight Transport Demand Forecasting in Urban Logistics Planning: A Case Study of Yiwu City
p.915

Integration and Optimization of Quay Cranes and Trucks at Container Terminal
p.922

HomeApplied Mechanics and MaterialsApplied Mechanics and Materials Vols. 505-506The Choice of Different Logistics Policies...

The Choice of Different Logistics Policies Considering Transportation and Inventory Costs in a Two-Echelon Distribution System

Abstract:

This paper presented a formal analysis for the alternative of logistics centralization and decentralization policy in a two-echelon distribution system. First, functions of transportation and inventory costs under different policies in the system were developed. Second, the differences between transportation and inventory costs were compared, and the relationship between transportation and inventory cost difference was analyzed through a balance ratio. At last, some indicators were derived to measure the level of demand uncertainty, the amount of retailers and the size of customer orders. It shows that the optimal logistics policy can be determined as a tradeoff between transportation and inventory costs. And the indicators can provide a basis for selecting the optimal logistics policy.

You might also be interested in these eBooks

View Preview

Info:

Periodical:

Applied Mechanics and Materials (Volumes 505-506)

Pages:

902-906

DOI:

https://doi.org/10.4028/www.scientific.net/AMM.505-506.902

Citation:

Cite this paper

Online since:

January 2014

Authors:

Pin Lv*, Cheng Zheng Ma

Keywords:

Centralization, Decentralization, Inventory Cost, Transportation Cost, Two-Echelon Distribution System

Export:

RIS, BibTeX

Price:

Permissions CCC:

Request Permissions

Permissions PLS:

Request Permissions

Сopyright:

Citation:

* - Corresponding Author

References

[1] Liang Wang, Shaorong Sui, and Xiaoceng Wu. Integrating Transportation and Inventory Decisions in a Tow-echelon Distribution System, The Journal of Quantitative & Technical Economics, 2005 (4): 127-133. (In Chinese).

Google Scholar

[2] Alireza, M., Mary, E. K. and J. Ashayeri. Muti-level Inventory Management Decisions with Transportation Cost Consideration, Transportation Research Part E, 2010 (46): 719-734.

DOI: 10.1016/j.tre.2009.12.012

Google Scholar

[3] Anily S, Federgruen A. One Warehouse Multiple Retailer Systems with Vehicle Routing Costs, Management science, 1990(36): 92~ 1441.

DOI: 10.1287/mnsc.36.1.92

Google Scholar

[4] Chandrasekhar D, Rajesh T. Role of Inventory and Transportation Costs in Determining the Optimal Degree of Centralization , Transportation Research, 1997(33): 171~ 179.

DOI: 10.1016/s1366-5545(97)00019-7

Google Scholar

[5] Hao Xiong. Introduction of the Relationship between Safety Stock and Transshipment in Two-Echelon Systems, Systems Engineering-theory & Practice, 2007(6): 100~ 104. (In Chinese).

Google Scholar

[6] Patton, Jr, J. D. Logistics Technology and Management. The Solomon Press, New York, (1986).

Google Scholar