Integrated inventory and transportation decision for ubiquitous supply chain management

Ki Sung Hong; Sang Soo Yeo; Hyoung Joong Kim; Ek Peng Chew; Chulung Lee

doi:10.1007/s10845-011-0581-x

Integrated inventory and transportation decision for ubiquitous supply chain management

Ki Sung Hong, Sang Soo Yeo, Hyoung Joong Kim, Ek Peng Chew, Chulung Lee

Research output: Contribution to journal › Article › peer-review

12 Citations (Scopus)

Abstract

We consider price-dependent demand and develop an integrated inventory and transportation policy with strategic pricing to maximize the total profit for a ubiquitous enterprise. The proposed policy provides the optimal ordering, shipment and pricing decision. We first assume that demand for a product is a linear function of the price. A mathematical model for the total profit under quantity based dispatch is developed in consideration of ordering, shipment and pricing variables. Optimality properties for the model are then obtained and an efficient algorithm is provided to compute the optimal parameters for ordering, shipment and pricing decision. Finally, we extend our results to a more general case where demand for the product is a convex or a concave function of the price.

Original language	English
Pages (from-to)	977-988
Number of pages	12
Journal	Journal of Intelligent Manufacturing
Volume	23
Issue number	4
DOIs	https://doi.org/10.1007/s10845-011-0581-x
Publication status	Published - 2012 Aug

Keywords

General demand function
Linear demand function
Pricing
Shipment consolidation
Ubiquitous enterprise
Ubiquitous supply chain management

ASJC Scopus subject areas

Software
Industrial and Manufacturing Engineering
Artificial Intelligence

Access to Document

10.1007/s10845-011-0581-x

Cite this

@article{72c44742f57d4ae3a1771a7d753966cc,

title = "Integrated inventory and transportation decision for ubiquitous supply chain management",

abstract = "We consider price-dependent demand and develop an integrated inventory and transportation policy with strategic pricing to maximize the total profit for a ubiquitous enterprise. The proposed policy provides the optimal ordering, shipment and pricing decision. We first assume that demand for a product is a linear function of the price. A mathematical model for the total profit under quantity based dispatch is developed in consideration of ordering, shipment and pricing variables. Optimality properties for the model are then obtained and an efficient algorithm is provided to compute the optimal parameters for ordering, shipment and pricing decision. Finally, we extend our results to a more general case where demand for the product is a convex or a concave function of the price.",

keywords = "General demand function, Linear demand function, Pricing, Shipment consolidation, Ubiquitous enterprise, Ubiquitous supply chain management",

author = "Hong, {Ki Sung} and Yeo, {Sang Soo} and Kim, {Hyoung Joong} and Chew, {Ek Peng} and Chulung Lee",

note = "Funding Information: Acknowledgments This work was supported by grant No. R01-2006-000-10941-0 from the Basic Research Program of the Korea Science & Engineering Foundation. This work was also supported by a Korea University Grant.",

year = "2012",

month = aug,

doi = "10.1007/s10845-011-0581-x",

language = "English",

volume = "23",

pages = "977--988",

journal = "Journal of Intelligent Manufacturing",

issn = "0956-5515",

publisher = "Springer Netherlands",

number = "4",

}

TY - JOUR

T1 - Integrated inventory and transportation decision for ubiquitous supply chain management

AU - Hong, Ki Sung

AU - Yeo, Sang Soo

AU - Kim, Hyoung Joong

AU - Chew, Ek Peng

AU - Lee, Chulung

N1 - Funding Information: Acknowledgments This work was supported by grant No. R01-2006-000-10941-0 from the Basic Research Program of the Korea Science & Engineering Foundation. This work was also supported by a Korea University Grant.

PY - 2012/8

Y1 - 2012/8

N2 - We consider price-dependent demand and develop an integrated inventory and transportation policy with strategic pricing to maximize the total profit for a ubiquitous enterprise. The proposed policy provides the optimal ordering, shipment and pricing decision. We first assume that demand for a product is a linear function of the price. A mathematical model for the total profit under quantity based dispatch is developed in consideration of ordering, shipment and pricing variables. Optimality properties for the model are then obtained and an efficient algorithm is provided to compute the optimal parameters for ordering, shipment and pricing decision. Finally, we extend our results to a more general case where demand for the product is a convex or a concave function of the price.

AB - We consider price-dependent demand and develop an integrated inventory and transportation policy with strategic pricing to maximize the total profit for a ubiquitous enterprise. The proposed policy provides the optimal ordering, shipment and pricing decision. We first assume that demand for a product is a linear function of the price. A mathematical model for the total profit under quantity based dispatch is developed in consideration of ordering, shipment and pricing variables. Optimality properties for the model are then obtained and an efficient algorithm is provided to compute the optimal parameters for ordering, shipment and pricing decision. Finally, we extend our results to a more general case where demand for the product is a convex or a concave function of the price.

KW - General demand function

KW - Linear demand function

KW - Pricing

KW - Shipment consolidation

KW - Ubiquitous enterprise

KW - Ubiquitous supply chain management

UR - http://www.scopus.com/inward/record.url?scp=84865210964&partnerID=8YFLogxK

U2 - 10.1007/s10845-011-0581-x

DO - 10.1007/s10845-011-0581-x

M3 - Article

AN - SCOPUS:84865210964

SN - 0956-5515

VL - 23

SP - 977

EP - 988

JO - Journal of Intelligent Manufacturing

JF - Journal of Intelligent Manufacturing

IS - 4

ER -

Integrated inventory and transportation decision for ubiquitous supply chain management

Abstract

Keywords

ASJC Scopus subject areas

Access to Document

Other files and links

Fingerprint

Cite this