Journal of Korean Institute of Industrial Engineers (대한산업공학회지)

Korean Institute of Industrial Engineers (대한산업공학회)
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An Optimal Distribution Model under Consideration of Delivery Unit and Backlogging Costs

수송단위에 의한 지연납기를 고려한 최적 수송량 결정 모형

  • Lee, Yang Ho (Department of Industrial Engineering, Hanyang University) ;
  • An, Joon-Hong (Department of Industrial Engineering, Hanyang University) ;
  • Choi, Gyunghyun (Department of Industrial Engineering, Hanyang University)
  • Published : 2003.09.30
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Abstract

In this paper, we propose a mathematical optimization model with a suitable algorithm to determine delivery and backlogging quantities by minimizing the total cost including the penalty costs for delay. The system has fixed transshipment costs and demands are fulfilled by some delivery units that represent the volume of delivery amount to be shipped in a single time period. Since, backlogging is allowed, demands could be delivered later at the expense of some penalty costs. The model provides the optimal decisions on when and how much to he delivered while minimizing the total costs. To solve the problem, we propose an algorithm that uses the Lagrangian dual in conjunction with some primal heuristic techniques that exploit the special structure of the problem. Finally, we present some computational test results along with comments on the further study.

Keywords

References

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