Two-stage inventory models with a bi-modal transportation cost

B. Q. Rieksts, José A. Ventura

Research output: Contribution to journalArticlepeer-review

22 Scopus citations


This paper discusses inventory models over an infinite planning horizon with constant demand rate and two modes of transportation. These transportation options include truckloads and a less than truckload carrier. An optimal algorithm is derived for a one-warehouse one-retailer system. A power-of-two heuristic algorithm is also proposed for a one-warehouse multi-retailer system. Computational results are provided to show that, on the average, the heuristic algorithm is at least 94% effective.

Original languageEnglish (US)
Pages (from-to)20-31
Number of pages12
JournalComputers and Operations Research
Issue number1
StatePublished - Jan 1 2010

All Science Journal Classification (ASJC) codes

  • Computer Science(all)
  • Modeling and Simulation
  • Management Science and Operations Research


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