International Journal of Business Management and Administration Vol. 4(1), pp. 008-016, February 2015 ISSN 2327-3100 ©2015 Academe Research Journals

Full Length Research Paper

Transportation cost in multi-item economic order quantity

Abbas Raad¹*, S.M.T. Fatemi Ghomi², Fariborz Jolai³, Hasan Farsijani¹ and Gazaleh Sadidi¹

¹Department of Management and Accounting, Shahid Beheshti University, Tehran, Iran.

²Department of Industrial Engineering, Amirkabir University of Technology, Tehran, Iran.

³Department of Industrial Engineering, University of Tehran, Tehran, Iran.

*Corresponding author. E-mail: raad@sbu.ac.ir.

Accepted 12 December, 2014

Abstract

This paper addresses a supplier-retailer logistic system for multi-item as a two-echelon environment. There is a single location in each echelon; the unique supplier at the first echelon has to replenish the retailer’s warehouse at the second echelon. We present the model which involves multi stage shipment with a specific number of vehicles and an algorithm is presented for solving the model. Computational results were used to verify the proposed model as well as the efficiency of the algorithm.

Keywords: Logistics management, multi-item, integrated models, transportation cost.