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A search algorithm for determination of economic order quantity in a two-level supply chain system with transportation cost

Pirayesh Neghab, M ; Sharif University of Technology | 2008

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  1. Type of Document: Article
  2. DOI: 10.3923/jas.2008.163.167
  3. Publisher: Asian Network for Scientific Information , 2008
  4. Abstract:
  5. This study considers a two-level supply chain system consisting of one warehouse and a number of identical retailers. In this system, we incorporate transportation costs into inventory replenishment decisions. The transportation cost contains a fixed cost and a variable cost. We assume that the demand rate at each retailer is known and the demand is confined to a single item. First, we derive the total cost which is the sum of the holding mid ordering cost at the warehouse and retailers as well as the transportation cost from the warehouse to retailers. Then, we propose a search algorithm to find the economic order quantities for the warehouse and retailers which minimize the total cost. © 2008 Asian Network for Scientific Information
  6. Keywords:
  7. Chains ; Cost accounting ; Economic analysis ; Inventory control ; Learning algorithms ; Sales ; Supply chain management ; Transportation ; Warehouses ; Demand rates ; Economic order quantity ; Inventory replenishment ; Ordering cost ; Search Algorithms ; Supply chain systems ; Transportation cost ; Variable costs ; Costs
  8. Source: Journal of Applied Sciences ; Volume 8, Issue 1 , 2008 , Pages 163-167 ; 18125654 (ISSN)
  9. URL: https://scialert.net/abstract/?doi=jas.2008.163.167