We have developed joint replenishment and consolidated freight delivery policies for a third party warehouse that handles multiple items, which have deterministic demand rates in a supply chain. Two policies are proposed and mathematical models are developed to obtain the optimal parameters for the proposed policies. Four efficient algorithms are presented to solve the mathematical models for the two policies. The performances of the two policies with the parameters obtained from the proposed algorithms are then compared with the common cycle approach for 1600 randomly generated problems. The results show the robust performance of the proposed algorithm for both policies.
Bibliographical noteFunding Information:
The authors are grateful to the constructive comments of two anonymous referees. This work was supported by the Grant of the Korean Ministry of Education, Science and Technology (The Regional Core Research Program/Institute of Logistics Information Technology).
- Freight consolidation
- Heuristic algorithm
- Joint replenishment problem
ASJC Scopus subject areas
- General Business,Management and Accounting
- Economics and Econometrics
- Management Science and Operations Research
- Industrial and Manufacturing Engineering