Comparison of Typical Shipment Consolidation Programs: Structural Results

M. Ali ÜLKÜ

Abstract


Shipment consolidation, a commonly used strategy in freight transportation, is the practice of consolidating several small items and then dispatching them on the same vehicle. If applied appropriately, a shipment consolidation program may drive out substantial costs in the logistics supply chain. However, the optimal policy for such a consolidation program in a random setting is not yet fully investigated in the literature. In this paper, we study three alternative systematic shipment consolidation programs: Time Policy, Quantity Policy, and Hybrid Policy. We consider, for one echelon of a logistics supply chain, a freight-arrival process that is Poisson and unit-sized. Accordingly, we analyze these policies and obtain structural results for which one policy is superior to the others, on the basis of total cost per order.
Key Words: Stochastic modeling; Logistics supply chain; Freight transportation; Quantity- based / time-based dispatching

Keywords


Stochastic modeling; Logistics supply chain; Freight transportation; Quantity- based / time-based dispatching

Full Text:

PDF


DOI: http://dx.doi.org/10.3968/j.mse.1913035X20090304.003

Refbacks

  • There are currently no refbacks.


Copyright (c)



Share us to:   

Reminder

  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

  • Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

  • Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.


We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases:
caooc@hotmail.com; mse@cscanada.net; mse@cscanada.org

 Articles published in Management Science and Engineering are licensed under Creative Commons Attribution 4.0 (CC-BY).

 MANAGEMENT SCIENCE AND ENGINEERING Editorial Office

Address:1055 Rue Lucien-L'Allier, Unit #772, Montreal, QC H3G 3C4, Canada.

Telephone: 1-514-558 6138
Http://www.cscanada.net Http://www.cscanada.org

Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures