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Integrated Procurement And Transportation Planning For Purchased Components: A Case Study

This study is about an integrated procurement and transportation planning system for purchased components of a consumer-durables manufacturer. Due to transportation cost structures and demand characteristics our problem can be classified as a variant of the dynamic-demand joint
replenishment problem. The problem is to determine the replenishment policy using the advantages of coordinated transportation of items that will minimize the sum of total inventory holding and tranportation costs over a finite planning horizon. A mathematical model is formulated for purchasing and transportation decisions for the purchased items using the advantage of joint transportation costs. A two-phased solution method is proposed in order to obtain a &ldquo / good solution&rdquo / for the problem. The proposed solution
method is compared with the current practice for different problem instances using retrospective data and created data. As a result it is shown that proposed method decrease the total inventory and transportation cost of the system even though the first aggregate problem can not be solved to
optimality.

Identiferoai:union.ndltd.org:METU/oai:etd.lib.metu.edu.tr:http://etd.lib.metu.edu.tr/upload/3/12609572/index.pdf
Date01 May 2008
CreatorsYanik, Hatice Deniz
ContributorsBayindir, Zeynep Pelin
PublisherMETU
Source SetsMiddle East Technical Univ.
LanguageEnglish
Detected LanguageEnglish
TypeM.S. Thesis
Formattext/pdf
RightsTo liberate the content for public access

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