Submit Manuscript

Journal of Applied Sciences

Year: 2008 | Volume: 8 | Issue: 1 | Page No.: 163-167
Facebook Twitter Digg Reddit Linkedin StumbleUpon E-mail

Article Trend

Total views 351

Search

Authors

Mohammadali Pirayesh Neghab

Rasoul Haji

Keywords

Research Article

A Search Algorithm for Determination of Economic Order Quantity in a Two-Level Supply Chain System with Transportation Cost

Mohammadali Pirayesh Neghab and Rasoul Haji
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 and 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.
PDF Fulltext XML References Citation

Leave a Comment

Your email address will not be published. Required fields are marked *