Article

A Recursive Algorithm for Order Cycle-time that Minimizes Logistics Cost

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A firm's logistics cost, including shipping and inventory-carrying, is a substantial percentage of its sales. Nevertheless, typical inventory-control methods ignore or insufficiently represent the shipping cost. This paper describes a recursive algorithm that determines the reorder cycle-time that minimizes total logistics cost. It allows for a realistic accounting of shipping cost, which is modelled here as a function of shipping distance and weight. The algorithm uses a relaxation procedure to identify a suitable initial approximation to the optimal order cycle-time and then, through a series of recursive steps, moves to the optimal result. We demonstrate the algorithm with a single item, with a group of items that share a common order cycle, and with multi-items when item demands are random variables. Experience with this algorithm indicates that it converges to the optimal result in a very few steps.

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Ketersediaan

Informasi Detail

Judul Seri

A Recursive Algorithm for Order Cycle-time that Minimizes Logistics Cost

No. Panggil

ATC LO BUF a

Penerbit

: JSTOR., 1999

Deskripsi Fisik

11p

Bahasa

English

ISBN/ISSN

-

Klasifikasi

LO

Tipe Isi

-

Tipe Media

-

Tipe Pembawa

online resource

Edisi

Vol. 40, No.4, pp. 367-377

Subjek

Shipping
inventory,
relaxation procedure

Info Detail Spesifik

-

Pernyataan Tanggungjawab

FRANK P. BUFF A

Versi lain/terkait

Lampiran Berkas

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