Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/10041
Title: A mathematical model for a multi-commodity, two-stage transportation and inventory problem
Authors: Ji, P 
Chen, KJ
Yan, QP
Keywords: Inventory
Multi-commodity
Network programming
Rational unit shipping cost
Transportation
Issue Date: 2008
Publisher: Cincinnati
Source: International journal of industrial engineering : theory applications and practice, 2008, v. 15, no. 3, p. 278-285 How to cite?
Journal: International Journal of Industrial Engineering : Theory Applications and Practice 
Abstract: This paper presents a mathematical model for two-stage planning of transportation and inventory for many sorts of products (multi-commodity). The situation considered in this paper, which happens in a local furniture manufacturing firm, is that the total supply in origins exceeds the current-stage's total demand from all destinations (markets). Therefore, the problem is how to arrange the current-stage's shipping in consideration of next-stage's (that is, future's) inventory in both origins and destinations. A mathematical model is proposed for the problem with the objective of minimizing the total cost of both shipping and inventory for all products within two stages. Meanwhile, since the next-stage's shipping costs usually are unknown, this paper presents a new concept of rational unit shipping cost: a forecasted average cost with weight of nextstage's shipping amount. Finally, a numerical example extracted from the furniture manufacturing company with 4 origins, 4 destinations and 4 commodities is illustrated in the paper.
URI: http://hdl.handle.net/10397/10041
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