A Recursive Algorithm for Order Cycle-time that Minimizes Logistics Cost
作者:
BuffaFrank P.,
MunnJoseph R.,
期刊:
Journal of the Operational Research Society
(Taylor Available online 1989)
卷期:
Volume 40,
issue 4
页码: 367-377
ISSN:0160-5682
年代: 1989
DOI:10.1057/jors.1989.55
出版商: Taylor&Francis
关键词: inventory;relaxation procedure;shipping
数据来源: Taylor
摘要:
AbstractA firm's logistics cost, including shipping and inventory-carrying, is a substantial percentage of its sales. Nevertheless, typical inventory-control methods ignore or insufficiently represent the shipping cost. This paper describes a recursive algorithm that determines the reorder cycle-time that minimizes total logistics cost. It allows for a realistic accounting of shipping cost, which is modelled here as a function of shipping distance and weight. The algorithm uses a relaxation procedure to identify a suitable initial approximation to the optimal order cycle-time and then, through a series of recursive steps, moves to the optimal result. We demonstrate the algorithm with a single item, with a group of items that share a common order cycle, and with multi-items when item demands are random variables. Experience with this algorithm indicates that it converges to the optimal result in a very few steps.
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