Article ID: | iaor20042948 |
Country: | Netherlands |
Volume: | 46 |
Issue: | 2 |
Start Page Number: | 389 |
End Page Number: | 397 |
Publication Date: | Apr 2004 |
Journal: | Computers & Industrial Engineering |
Authors: | Wang Shou-Yang, Zhao Qiu-Hong, Lai K.-K., Xia Guo-Ping |
In this paper, we address the problem of deciding the optimal ordering quantity and frequency for a supplier–retailer logistic system in which the transportation cost as well as the multiple uses of the vehicles are considered. Based on the traditional economic order quantity (EOQ) formula, a modified EOQ model is set up and an algorithm for the model is presented. Computational results verify the proposed model as well as the efficiency of the algorithm.