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A multi-vendor multi-buyer integrated transportation inventory model and and its solution technique
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Abstract:
Transportation of a product from multi-source to multi-destination with minimal total transportation cost plays an important role in logistics and supply chain management.
Two of the key issues in this supply chain management are the transportation and the inventory costs. To achieve significant savings, these two issues should be integrated instead of treating them separately. In this research first the transportation problem is considered and it has been followed by the integrated transportation-inventory system.
In Chapter 3, we design a C++ computational program of Vogel's Approximation Method (VAM) for finding an initial feasible solution to unbalanced TP by adding and without adding a dummy column. Then we carry out a comparative study on solutions of 10 numerical problems obtained by these two methods. In 4 out of 10 problems, better results are found by the method using a dummy column while the method without adding a dummy column led to better results in 5 out of 10. Thus the method in finding an initial feasible solution (IFS) without using dummy column is found to be useful in some cases.
In Chapter 4, we demonstrate a deficiency of an existing method in obtaining the minimal total cost solution to the TP. Then a better polynomial time heuristic solution technique to obtain a better IFS to the TP is developed and coded using C++ programming language. Comparative studies of this heuristic with the best available ones in the literature on results of numerical problems are carried out to show better performance of the current one. Our heuristic is found to lead to the minimal total cost solution in most cases (92%) of the studied numerical problems.
In Chapter 5, we study transportation problem with varying demands and supplies (PVDS). This type of TP has received attention of only one researcher, who formulated the problem and solved it by LINGO. We demonstrate that this method fails to obtain the correct upper bound solution always. Then we extend this model to include the inventory costs during transportation and at destinations. Although the lower bound solution of this extended model can be obtained methodologically, determination of the upper bound solution for this model becomes an NP hard problem. Here we carry out theoretical analyses on developing the lower and the upper bound heuristic solution techniques to the extended model denoted by ITIM (integrated transportation-inventory model). A comparative study on solutions of numerical problems shows promising performance of the current upper bound technique. Another comparative study on results of numerical problems demonstrates the effect of inclusion of the inventory costs.
In Chapter 6, this ITIM is further extended to include variation in lead time. Then a better heuristic solution technique is presented to solve this extended ITIM. Results of the proposed heuristic on some numerical examples are reported. Further, a sensitivity analysis on the arrangement of lots transferring (from suppliers to buyers) is performed.
Finally, conclusion by highlighting the limitations of the current research and indicating the future research scope on the topic is drawn.
Description:
xxi, 186 pages : colour illustrations, table, chart ; 30 cm | A dissertation submitted in partial fulfillment of the requirement for the award of the degree of Doctor of Philosophy in Mathematics | Thesis is not for loan or reference use | Thesis (PhD in Mathematics) - Universiti Brunei Darussalam 2014 | Includes bibliographical references pages 180-186.
Date:
2014
Authors:
Mohamed Silmi Juman Zeinul Abdeen
Publisher:
Universiti Brunei Darussalam
