Approximate analysis of the delivery splitting model

The concept of order splitting has been proposed primarily to enable buyers to obtain substantial inventory savings. In this paper we investigate the order splitting concept from the suppliers point of view, referred to as de livery splitting. We will show that for the supplier considerable cost savi ngs can be obtained by using the concept of delivery splitting, although th e motivation and the practical implementation can be different for buyer an d supplier. Also we will show that an analytical (although approximative) t reatment of the delivery splitting concept is feasible, which brings the co ncept within reach of practical implementation.