Impact and Dynamics of Centralization in Transportation Cost of Cement Bag’s Vendor and Retailer
Journal Title: International Journal of Modern Engineering Research (IJMER) - Year 2015, Vol 5, Issue 3
Abstract
The goal of many research efforts cognate to supply chain management is to propose mechanisms to reduce operational costs. Inventory holding and conveyance costs are regarded as the most paramount operational costs in inventory management. Many researches in supply chain management only consider the inventory cost as a criterion to decide replenishment policy. In the replenishment process, in juxtaposition of the inventory cost, the conveyance cost is a major cost factor which affects the shipment size. Thus in this research work the conveyance cost is additionally considered to minimize the inventory cost. Two models are studied: when the retailers make decisions independently i.e. Decentralized decision model and when the retailers are branches of the same firm i.e. Centralized decision model to determine the best solution to minimize costs
Authors and Affiliations
Himanshu Gangwal , Vishal Achwal
Keywords
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