The Problem of Optimal Delivery Sizes in the Logistics System of a Manufacturing Enterprise

10.6702/ijbi.2014.9.1.5

Dariusz Milewski

Optimization ； trade-off ； decision making ； logistics ； logistics system ； inventory management

International Journal of Business and Information

9卷1期（2014 / 03 / 01）

117 - 141

英文

When determining the optimal size of the deliveries of a product to a warehouse, one should consider not just a single factor such as warehousing or the cost of keeping inventory, but also other factors such as the cost of ordering or transportation. The factors to be considered in such a decision become more complex when the situation involves several products or an entire distribution system that might consist, for example, of one or more central warehouses, as well as regional or local warehouses or distribution centers. This paper addresses the problem of optimizing logistics decisions in a two-level inventory management system, taking into consideration also the transportation costs involved. Using a Polish chemical manufacturing company as the case study, the author developed a model of total costs for the distribution network and, for simulation purposes, applied a computer program as a virtual model of the production company and its logistics system. The model is very detailed because it reproduces logistics processes on daily basis.

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