Fully loaded direct shipping strategy in one warehouse/N retailer systems without central inventories

Fully loaded direct shipping strategy in one warehouse/N retailer systems without central inventories

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Article ID: iaor1998182
Country: United States
Volume: 31
Issue: 2
Start Page Number: 193
End Page Number: 195
Publication Date: May 1997
Journal: Transportation Science
Authors: ,
Keywords: transportation: general
Abstract:

In this paper, we consider one warehouse/multiple retailer systems with transportation costs. The planning horizon is infinite and the warehouse keeps no central inventory. It is shown that the fully loaded direct shipping strategy is optimal among all possible shipping/allocation strategies if the truck capacity is smaller than a certain quantity, and a bound is provided for the general case.

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