C. Das et R. Tyagi, ROLE OF INVENTORY AND TRANSPORTATION COSTS IN DETERMINING THE OPTIMALDEGREE OF CENTRALIZATION, TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW, 33(3), 1997, pp. 171-179
Citations number
29
Categorie Soggetti
Transportation,"Operatione Research & Management Science",Transportation
This paper presents a formal analysis of the inventory centralization
decision in a wider perspective. Expressions for various elements of t
otal system cost are developed and their individual and combined effec
ts on centralization are analyzed using an optimization model. The maj
or thrust of the paper is on determining the optimal degree of central
ization as a tradeoff between inventory and transportation costs. It c
onsiders five scenarios each representing a different role of inventor
y and transportation in the total supply system. Examples of how each
scenario may arise in practice are given and the best degrees of centr
alization for the scenarios are compared and illustrated with secondar
y data. (C) 1997 Elsevier Science Ltd.