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.
All Science Journal Classification (ASJC) codes
- Computer Science(all)
- Modeling and Simulation
- Management Science and Operations Research