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The Minimization of the Logistic Costs on Sequences of Links with Given Shipping Frequencies

  • Luca Bertazzi
  • Maria Grazia Speranza
Conference paper
  • 225 Downloads
Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 460)

Abstract

In this paper we consider a sequence of links in which a set of products has to be shipped from a common origin to a common destination through one or several intermediate nodes. Our aim is to determine periodic shipping strategies that minimize the sum of inventory and transportation costs when a set of shipping frequencies is given. Prom the theoretical point of view, the main question is to derive a formulation of the total inventory cost on the network. From the computational point of view, given that the simpler single link problem is known to be NP—hard, we present several heuristic algorithms based either on the decomposition of the sequence in links or on the dynamic programming techniques and compare them on a set of randomly generated problem instances.

Keywords

Sequences of links Inventory and transportation costs Shipping frequencies Heuristic algorithms 

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References

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Copyright information

© Springer-Verlag Berlin Heidelberg 1998

Authors and Affiliations

  • Luca Bertazzi
    • 1
  • Maria Grazia Speranza
    • 1
  1. 1.Dept. of Quantitative MethodsUniversity of BresciaItaly

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