Inbound replenishment and outbound dispatch decisions under hybrid shipment consolidation policies: an analytical model and comparison

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buir.contributor.authorWei, Bo
buir.contributor.orcidWei, Bo|0000-0001-9801-4846
dc.citation.epage21en_US
dc.citation.spage1
dc.citation.volumeNumber175
dc.contributor.authorWei, Bo
dc.contributor.authorÇetinkaya, S.
dc.contributor.authorCline, D. B. H.
dc.date.accessioned2024-03-13T13:32:25Z
dc.date.available2024-03-13T13:32:25Z
dc.date.issued2023-05-13
dc.departmentDepartment of Management
dc.description.abstractWe investigate operational decisions in a distribution warehouse facing stochastic demand and incurring fixed and linear transportation costs for the inbound inventory replenishment and outbound dispatch decisions. In order to realize scale economies associated with transportation both on the outbound and inbound sides, dispatch schedules and replenishment decisions at the warehouse must be synchronized over time. Immediate delivery policies on the outbound side are not financially viable because outbound dispatch operations will benefit from temporal shipment consolidation. Our focus in this setting is the analytical modeling of hybrid shipment consolidation policies and their comparison to the time-based and quantity-based counterparts. To this end, we propose analytical (exact and approximate) methods to compute and compare the cost under hybrid policies relative to its alternatives. Since shipment consolidation impacts customer waiting and inventory holding, we also investigate the average delay per order and average inventory per time unit as two important metrics of the distribution operation’s performance, along with the annual cost. We compare these metrics among the alternative under hybrid, time-based, and quantity-based policies. The comparison then allows us to offer an explicit analytical comparison of long-run average cost under these three policies without needing to solve the corresponding optimization problems. Notably, our results offer an analytical characterization of relative cost performance (vis-a-vis the numerical comparison available in the literature) and demonstrate the implications of alternative shipment consolidation policies regardless of the values of model parameters. The results are of practical value in the context of the design and operation of an integrated framework for inventory-transportation systems.
dc.description.provenanceMade available in DSpace on 2024-03-13T13:32:25Z (GMT). No. of bitstreams: 1 Inbound_replenishment_and_outbound_dispatch_decisions_under_hybrid_shipment_consolidation_policies_an_analytical_model_and_comparison.pdf: 588986 bytes, checksum: 3c4537e7a407d70858bd71c552a4e8ab (MD5) Previous issue date: 2023-05-13en
dc.identifier.doi10.1016/j.tre.2023.103135
dc.identifier.issn13665545
dc.identifier.urihttps://hdl.handle.net/11693/114702
dc.language.isoen
dc.relation.isversionofhttps://dx.doi.org/10.1016/j.tre.2023.103135
dc.source.titleTransportation Research Part E: Logistics and Transportation Review
dc.subjectSupply chain integration
dc.subjectCoordination of inventory and transportation decisions
dc.subjectShipment consolidation
dc.subjectHybrid/time-and-quantity consolidation policy
dc.subjectRenewal theory
dc.subjectTruncated random variables
dc.titleInbound replenishment and outbound dispatch decisions under hybrid shipment consolidation policies: an analytical model and comparison
dc.typeArticle

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