economic order strategy in dining service distribution center qian zhang qiuyue zhao
TRANSCRIPT
Economic Order Strategy in Dining Service Distribution Center
Qian Zhang Qiuyue Zhao
Problem Definition
S2
S1
S3
S4
S5
S6
Dining Hall -1
Dining Hall-2
Dining Hall-3
Problem Definition
Transportation Cost
Holding Cost
Perish Cost
Location of Suppliers
Inventory Level
Product life
Product Price
Objective
• Minimize total cost
• How much to order from which supplier
• Tracing the inventory of product from
certain supplier at time t
• Check how much product DC dump at
time t
Assumption• DC only order once in a certain time period• All the products delivered from DC until all the
orders arrived• Frequency of product delivered from DC to dining
halls in a certain period is known• The shortage for DC is not allowed• The holding cost for each kind of product is same• One supplier can provide multiple types of
products
Model
Parameter
Psk Price of the kth type of product by the sth Supplier
H Holding cost per product
Rs Transportation cost per truck of the sth Supplier
askt =1, if product k shipped by supplier s expires at time t
0, otherwise
Bs Truck transportation capacity of supplier s
Dkt Demand for product k at time t
Fsk Supply capability of supplier s for product k
Model
Variables
Qsk quantity of product k ordered from supplier s
Xskt inventory of product k from supplier s at time t
Yskt how much we use product k from supplier s to
satisfy demand in time t
Zskt amount we dump of product k from supplier s
at time t
Is times of delivered trucks
Model
Objective Function
skts k t
CH H X s k t
Min C CH CP CT
sk skts t
CP P Z k
s sCT R I s
skk
ss
QI
B s
Model
Constrains
Satisfy demand
Inventory balance
Minimize perish
Supply capability
Initial inventory
skt kts
Y D
, 1skt skt skt sk tX Y Z X
*(1 )skt skt sktZ X M a
sk skQ F
1sk skX Q
Model
Data Collection
• H=$0.08• P
• B
10
P1 P2 P3
S1 1.3 2.6 3.4
S2 1.8 2.3 3.2
S1 S2 S3 S4
B 150 170 200 210
• At time t1
11
P1 P2 P3 P4 P5 P6 P7 P8 P9 P10
S1 0 0 0 100 0 2260 0 0 0 1690
S2 3000 100 1800 18 0 0 2720 0 2052 0
S3 0 0 0 1452 210 0 540 4798 0 0
Data Collection
Result
S2S1 S3 S4 S5 S6
P1 P2 P3 P4 P5
P6 P7 P8 P9 P10
100
2260 1690
3000 100 1800 18
2720
2052
1452 210
540 4798
2000 5100 1141 150
500 301 48
1230
400500
2000
570
Products
Suppliers
Thank you!