Shipment Consolidation Policy under Uncertainty of Customer Order for Sustainable Supply Chain Management
With increasing concern over the environment, shipment consolidation has become one of a main initiative to reduce CO2 emissions and transportation cost among the logistics service providers. Increased delivery time caused by shipment consolidation may lead to customer’s order cancellation. Thus, or...
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doaj-34af0e7b77d34efab37a0924683fb00c2020-11-25T00:47:14ZengMDPI AGSustainability2071-10502017-09-0199167510.3390/su9091675su9091675Shipment Consolidation Policy under Uncertainty of Customer Order for Sustainable Supply Chain ManagementKyunghoon Kang0Ki-sung Hong1Ki Hong Kim2Chulung Lee3Graduate School of Information Security, Korea University, Seongbuk-gu, Seoul 02841, KoreaGraduate School of Management of Technology, Korea University, Seongbuk-gu, Seoul 02841, KoreaGraduate School of Industrial Management Engineering, Korea University, Seongbuk-gu, Seoul 02841, KoreaDivision of Industrial Management Engineering, Korea University, Seongbuk-gu, Seoul 02841, KoreaWith increasing concern over the environment, shipment consolidation has become one of a main initiative to reduce CO2 emissions and transportation cost among the logistics service providers. Increased delivery time caused by shipment consolidation may lead to customer’s order cancellation. Thus, order cancellation should be considered as a factor in order uncertainty to determine the optimal shipment consolidation policy. We develop mathematical models for quantity-based and time-based policies and obtain optimality properties for the models. Efficient algorithms using optimal properties are provided to compute the optimal parameters for ordering and shipment decisions. To compare the performances of the quantity-based policy with the time-based policy, extensive numerical experiments are conducted, and the total cost is compared.https://www.mdpi.com/2071-1050/9/9/1675inventory controlshipment consolidationquantity-based policyorder cancellation |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Kyunghoon Kang Ki-sung Hong Ki Hong Kim Chulung Lee |
spellingShingle |
Kyunghoon Kang Ki-sung Hong Ki Hong Kim Chulung Lee Shipment Consolidation Policy under Uncertainty of Customer Order for Sustainable Supply Chain Management Sustainability inventory control shipment consolidation quantity-based policy order cancellation |
author_facet |
Kyunghoon Kang Ki-sung Hong Ki Hong Kim Chulung Lee |
author_sort |
Kyunghoon Kang |
title |
Shipment Consolidation Policy under Uncertainty of Customer Order for Sustainable Supply Chain Management |
title_short |
Shipment Consolidation Policy under Uncertainty of Customer Order for Sustainable Supply Chain Management |
title_full |
Shipment Consolidation Policy under Uncertainty of Customer Order for Sustainable Supply Chain Management |
title_fullStr |
Shipment Consolidation Policy under Uncertainty of Customer Order for Sustainable Supply Chain Management |
title_full_unstemmed |
Shipment Consolidation Policy under Uncertainty of Customer Order for Sustainable Supply Chain Management |
title_sort |
shipment consolidation policy under uncertainty of customer order for sustainable supply chain management |
publisher |
MDPI AG |
series |
Sustainability |
issn |
2071-1050 |
publishDate |
2017-09-01 |
description |
With increasing concern over the environment, shipment consolidation has become one of a main initiative to reduce CO2 emissions and transportation cost among the logistics service providers. Increased delivery time caused by shipment consolidation may lead to customer’s order cancellation. Thus, order cancellation should be considered as a factor in order uncertainty to determine the optimal shipment consolidation policy. We develop mathematical models for quantity-based and time-based policies and obtain optimality properties for the models. Efficient algorithms using optimal properties are provided to compute the optimal parameters for ordering and shipment decisions. To compare the performances of the quantity-based policy with the time-based policy, extensive numerical experiments are conducted, and the total cost is compared. |
topic |
inventory control shipment consolidation quantity-based policy order cancellation |
url |
https://www.mdpi.com/2071-1050/9/9/1675 |
work_keys_str_mv |
AT kyunghoonkang shipmentconsolidationpolicyunderuncertaintyofcustomerorderforsustainablesupplychainmanagement AT kisunghong shipmentconsolidationpolicyunderuncertaintyofcustomerorderforsustainablesupplychainmanagement AT kihongkim shipmentconsolidationpolicyunderuncertaintyofcustomerorderforsustainablesupplychainmanagement AT chulunglee shipmentconsolidationpolicyunderuncertaintyofcustomerorderforsustainablesupplychainmanagement |
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1725261064679981056 |