A Multi-items Ordering Model with Mixed Parts Transportation Problem in a Supply Chain

Abstract

This paper explores the problem of making ordering decisions for multi-items with various constraints on the supply chain. With the advent of supply chain management, depots or warehouses fulfill a strategic role of achieving the logistics objectives of shorter cycle times, lower inventories, lower costs and better customer service. Many companies consider both their cost effectiveness and market proficiency to depend primarily on efficient logistics management. Depot management presently is considered a key to strengthening company logistics. In this paper, we propose a novel multi-items ordering model with the mixed parts transportation problem based on the depot system in a supply chain. Order range is especially introduced and used as decision parameters instead of order point to order multi-items. Finally, we test the model with a numerical example and show computational results that verify the effectiveness of the proposed model.