Cost optimization based on joint economic lot size model by incorporating transportation costs for single sullpier-purchaser

The increasing focus on supplier-purchaser coordination has become an essential issue to be managed efficiently in optimizing supply chain's performance. Procurement scenario indicates that most of supplier and purchaser have emphasized their effort in effective decision for inventory replen...

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Main Author:	Raden Achmad, Chairdina Leuveano
Format:	Thesis
Language:	English English
Published:	2014
Subjects:	H Social Sciences (General) HF Commerce
Online Access:	http://eprints.utem.edu.my/id/eprint/15004/1/COST%20OPTIMIZATION%20BASED%20ON%20JOINT%20ECONOMIC%20LOT%20SIZE%2024pages.pdf http://eprints.utem.edu.my/id/eprint/15004/2/Cost%20optimization%20based%20on%20joint%20economic%20lot%20size%20model%20by%20incorporating%20transportation%20costs%20for%20single%20supplier-purchaser.pdf
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spelling	my-utem-ep.150042022-09-15T15:31:20Z Cost optimization based on joint economic lot size model by incorporating transportation costs for single sullpier-purchaser 2014 Raden Achmad, Chairdina Leuveano H Social Sciences (General) HF Commerce The increasing focus on supplier-purchaser coordination has become an essential issue to be managed efficiently in optimizing supply chain's performance. Procurement scenario indicates that most of supplier and purchaser have emphasized their effort in effective decision for inventory replenishment independently. Instead of independent decision, Joint Economic Lot Size (JELS) model has been proposed as the representation of coordinated decision between supplier-purchaser. The main objective is to minimize joint total cost of supplier and purchaser by jointly deciding the optimal order quantity, batch production lot, and number of deliveries. Determination of inventory replenishment need to consider transportation as the function of shipment weight and haulage distance that simultaneously emulate freight rate schedules and two modes of transportation namely Truckload (TL) and Less than Truckload (LTL) shipment. Hence, this study proposes to incorporate transportation or freight cost function into JELS model. There are three proposed models in this study, namely: (i) JELS-Inverse (JELS-I) for emulating TL shipment, (ii) JELS Adjusted-inverse (JELS-A) for emulating LTL shipment, and (iii) JELS Lot-splitting (JELS-L) for minimizing joint total cost if the transportation is limited based on TL and LTL shipment. JELS-I and JELS-A constitutes the analytical mathematical model that validated using sensitivity analysis to analyze the robustness of the model. JELS-L is a model based Heuristic optimization approach to search solution within the interval solution of JELS-I and JELS-A. The models are examined by the numerical example for analyzing its feasibility in deriving the solution. The result shows that JELS-I provides a large order quantity but a small number of deliveries, otherwise, JELS-A yields smaller order quantity but a higher number of deliveries. Both models only resulting minimum joint total cost in the case of TL and LTL shipment meanwhile JELS-L performs better result than other models in minimizing joint cost. The models tested by experimenting the wide range of model parameter in order to analyze the effectiveness of the model in yielding a best solution to minimize joint total cost. The experimental result shows that JELS-L provides a smaller deviation toward the best solution rather than another model. It can be indicated that JELS-L model successfully gives promising results in a coordinated decision of the supply chain. 2014 Thesis http://eprints.utem.edu.my/id/eprint/15004/ http://eprints.utem.edu.my/id/eprint/15004/1/COST%20OPTIMIZATION%20BASED%20ON%20JOINT%20ECONOMIC%20LOT%20SIZE%2024pages.pdf text en public http://eprints.utem.edu.my/id/eprint/15004/2/Cost%20optimization%20based%20on%20joint%20economic%20lot%20size%20model%20by%20incorporating%20transportation%20costs%20for%20single%20supplier-purchaser.pdf text en validuser https://plh.utem.edu.my/cgi-bin/koha/opac-detail.pl?biblionumber=92081 mphil masters Universiti Teknikal Malaysia Melaka Faculty of Manufacturing Engineering Jafar, Fairul Azni
institution	Universiti Teknikal Malaysia Melaka
collection	UTeM Repository
language	English English
advisor	Jafar, Fairul Azni
topic	H Social Sciences (General) HF Commerce
spellingShingle	H Social Sciences (General) HF Commerce Raden Achmad, Chairdina Leuveano Cost optimization based on joint economic lot size model by incorporating transportation costs for single sullpier-purchaser
description	The increasing focus on supplier-purchaser coordination has become an essential issue to be managed efficiently in optimizing supply chain's performance. Procurement scenario indicates that most of supplier and purchaser have emphasized their effort in effective decision for inventory replenishment independently. Instead of independent decision, Joint Economic Lot Size (JELS) model has been proposed as the representation of coordinated decision between supplier-purchaser. The main objective is to minimize joint total cost of supplier and purchaser by jointly deciding the optimal order quantity, batch production lot, and number of deliveries. Determination of inventory replenishment need to consider transportation as the function of shipment weight and haulage distance that simultaneously emulate freight rate schedules and two modes of transportation namely Truckload (TL) and Less than Truckload (LTL) shipment. Hence, this study proposes to incorporate transportation or freight cost function into JELS model. There are three proposed models in this study, namely: (i) JELS-Inverse (JELS-I) for emulating TL shipment, (ii) JELS Adjusted-inverse (JELS-A) for emulating LTL shipment, and (iii) JELS Lot-splitting (JELS-L) for minimizing joint total cost if the transportation is limited based on TL and LTL shipment. JELS-I and JELS-A constitutes the analytical mathematical model that validated using sensitivity analysis to analyze the robustness of the model. JELS-L is a model based Heuristic optimization approach to search solution within the interval solution of JELS-I and JELS-A. The models are examined by the numerical example for analyzing its feasibility in deriving the solution. The result shows that JELS-I provides a large order quantity but a small number of deliveries, otherwise, JELS-A yields smaller order quantity but a higher number of deliveries. Both models only resulting minimum joint total cost in the case of TL and LTL shipment meanwhile JELS-L performs better result than other models in minimizing joint cost. The models tested by experimenting the wide range of model parameter in order to analyze the effectiveness of the model in yielding a best solution to minimize joint total cost. The experimental result shows that JELS-L provides a smaller deviation toward the best solution rather than another model. It can be indicated that JELS-L model successfully gives promising results in a coordinated decision of the supply chain.
format	Thesis
qualification_name	Master of Philosophy (M.Phil.)
qualification_level	Master's degree
author	Raden Achmad, Chairdina Leuveano
author_facet	Raden Achmad, Chairdina Leuveano
author_sort	Raden Achmad, Chairdina Leuveano
title	Cost optimization based on joint economic lot size model by incorporating transportation costs for single sullpier-purchaser
title_short	Cost optimization based on joint economic lot size model by incorporating transportation costs for single sullpier-purchaser
title_full	Cost optimization based on joint economic lot size model by incorporating transportation costs for single sullpier-purchaser
title_fullStr	Cost optimization based on joint economic lot size model by incorporating transportation costs for single sullpier-purchaser
title_full_unstemmed	Cost optimization based on joint economic lot size model by incorporating transportation costs for single sullpier-purchaser
title_sort	cost optimization based on joint economic lot size model by incorporating transportation costs for single sullpier-purchaser
granting_institution	Universiti Teknikal Malaysia Melaka
granting_department	Faculty of Manufacturing Engineering
publishDate	2014
url	http://eprints.utem.edu.my/id/eprint/15004/1/COST%20OPTIMIZATION%20BASED%20ON%20JOINT%20ECONOMIC%20LOT%20SIZE%2024pages.pdf http://eprints.utem.edu.my/id/eprint/15004/2/Cost%20optimization%20based%20on%20joint%20economic%20lot%20size%20model%20by%20incorporating%20transportation%20costs%20for%20single%20supplier-purchaser.pdf
_version_	1747833857967652864

Cost optimization based on joint economic lot size model by incorporating transportation costs for single sullpier-purchaser

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