Inventory and routing policies in vendor managed inventory system

Feng Tao; Kin Keung Lai; Tijun Fan

doi:10.1109/CSO.2012.68

Inventory and routing policies in vendor managed inventory system

Feng Tao
, Kin Keung Lai
, Tijun Fan

Research output: Chapters, Conference Papers, Creative and Literary Works › RGC 32 - Refereed conference paper (with host publication) › peer-review

Abstract

In this paper, an inventory control policy and routing strategy are jointly considered by developing dynamic programming model in vendor managed inventory system. The inventory policy is proved to be (s, S) pattern and two routing options are examined by simulation. Our numerical study shows that the best routing policy is to choose the farthest one from the supplier, consecutively. Compared to maximum capacity replenishment policy, not only the average revenue can be increased up to 10%, but also the average transportation cost is saved over 5%. © 2012 IEEE.

Original language	English
Title of host publication	Proceedings of the 2012 5th International Joint Conference on Computational Sciences and Optimization, CSO 2012
Pages	276-279
DOIs	https://doi.org/10.1109/CSO.2012.68
Publication status	Published - 2012
Event	2012 5th International Joint Conference on Computational Sciences and Optimization, CSO 2012 - Harbin, Heilongjiang, China Duration: 23 Jun 2012 → 26 Jun 2012

Conference

Conference	2012 5th International Joint Conference on Computational Sciences and Optimization, CSO 2012
Place	China
City	Harbin, Heilongjiang
Period	23/06/12 → 26/06/12

Research Keywords

Dynamic programming
Inventory control
Routing selection
VMI

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10.1109/CSO.2012.68

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@inproceedings{35ec2279dded44da891edf30ae18cd75,

title = "Inventory and routing policies in vendor managed inventory system",

abstract = "In this paper, an inventory control policy and routing strategy are jointly considered by developing dynamic programming model in vendor managed inventory system. The inventory policy is proved to be (s, S) pattern and two routing options are examined by simulation. Our numerical study shows that the best routing policy is to choose the farthest one from the supplier, consecutively. Compared to maximum capacity replenishment policy, not only the average revenue can be increased up to 10\%, but also the average transportation cost is saved over 5\%. {\textcopyright} 2012 IEEE.",

keywords = "Dynamic programming, Inventory control, Routing selection, VMI",

author = "Feng Tao and Lai, \{Kin Keung\} and Tijun Fan",

year = "2012",

doi = "10.1109/CSO.2012.68",

language = "English",

isbn = "9780769546902",

pages = "276--279",

booktitle = "Proceedings of the 2012 5th International Joint Conference on Computational Sciences and Optimization, CSO 2012",

note = "2012 5th International Joint Conference on Computational Sciences and Optimization, CSO 2012 ; Conference date: 23-06-2012 Through 26-06-2012",

}

Tao, F, Lai, KK & Fan, T 2012, Inventory and routing policies in vendor managed inventory system. in Proceedings of the 2012 5th International Joint Conference on Computational Sciences and Optimization, CSO 2012., 6274726, pp. 276-279, 2012 5th International Joint Conference on Computational Sciences and Optimization, CSO 2012, Harbin, Heilongjiang, China, 23/06/12. https://doi.org/10.1109/CSO.2012.68

Inventory and routing policies in vendor managed inventory system. / Tao, Feng; Lai, Kin Keung; Fan, Tijun.
Proceedings of the 2012 5th International Joint Conference on Computational Sciences and Optimization, CSO 2012. 2012. p. 276-279 6274726.

Research output: Chapters, Conference Papers, Creative and Literary Works › RGC 32 - Refereed conference paper (with host publication) › peer-review

TY - GEN

T1 - Inventory and routing policies in vendor managed inventory system

AU - Tao, Feng

AU - Lai, Kin Keung

AU - Fan, Tijun

PY - 2012

Y1 - 2012

N2 - In this paper, an inventory control policy and routing strategy are jointly considered by developing dynamic programming model in vendor managed inventory system. The inventory policy is proved to be (s, S) pattern and two routing options are examined by simulation. Our numerical study shows that the best routing policy is to choose the farthest one from the supplier, consecutively. Compared to maximum capacity replenishment policy, not only the average revenue can be increased up to 10%, but also the average transportation cost is saved over 5%. © 2012 IEEE.

AB - In this paper, an inventory control policy and routing strategy are jointly considered by developing dynamic programming model in vendor managed inventory system. The inventory policy is proved to be (s, S) pattern and two routing options are examined by simulation. Our numerical study shows that the best routing policy is to choose the farthest one from the supplier, consecutively. Compared to maximum capacity replenishment policy, not only the average revenue can be increased up to 10%, but also the average transportation cost is saved over 5%. © 2012 IEEE.

KW - Dynamic programming

KW - Inventory control

KW - Routing selection

KW - VMI

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U2 - 10.1109/CSO.2012.68

DO - 10.1109/CSO.2012.68

M3 - RGC 32 - Refereed conference paper (with host publication)

SN - 9780769546902

SP - 276

EP - 279

BT - Proceedings of the 2012 5th International Joint Conference on Computational Sciences and Optimization, CSO 2012

T2 - 2012 5th International Joint Conference on Computational Sciences and Optimization, CSO 2012

Y2 - 23 June 2012 through 26 June 2012

ER -

Inventory and routing policies in vendor managed inventory system

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