The Community for Technology Leaders
RSS Icon
Subscribe
Issue No.04 - July/August (2005 vol.20)
pp: 31-35
Wout Dullaert , University of Antwerp
Bert Vernimmen , University of Antwerp
Birger Raa , Ghent University
Frank Witlox , Ghent University
ABSTRACT
A new approach determines the optimal inbound-resupply strategy when a supplier ships goods to a receiver. The strategy refers to the particular combination of sourcing alternatives that minimizes the receiver's total product costs, comprising the product price and the total logistics costs (that is, order, transportation, and inventory costs). The new approach differs from traditional order-splitting approaches by requiring that order quantities be an integer combination of the different sourcing alternatives' capacities and allowing the demand rate and lead times to be distributed according to any distribution function. An evolutionary metaheuristic uses discrete-event simulation to calculate safety stock levels corresponding to a predetermined service level. This avoids rigid assumptions on the demand- and lead-time-distributions to better determine the reorder point for real-life inbound-resupply strategies.<p>This article is part of a special issue on advanced heuristics in transportation and logistics.</p>
INDEX TERMS
order splitting, evolutionary algorithm, simulation, metaheuristics, total logistics costs
CITATION
Wout Dullaert, Bert Vernimmen, Birger Raa, Frank Witlox, "A Hybrid Approach to Designing Inbound-Resupply Strategies", IEEE Intelligent Systems, vol.20, no. 4, pp. 31-35, July/August 2005, doi:10.1109/MIS.2005.60
16 ms
(Ver 2.0)

Marketing Automation Platform Marketing Automation Tool