Truckload
Lot Sizing with Multiple Customers Delivered Truckloads Separately
Annual demand for Large customer, RL = 60
Annual demand for Medium customer, RM = 24
Annual demand for Small customer, RS = 8
Customer specific delivery cost, sL = 250$
Customer specific delivery cost, sM = 250$
Customer specific delivery cost, sS = 250$
Unit Cost, CL = 10,000.00$
Unit Cost, CM = 10,000.00$
Unit Cost, CS = 10,000.00$
Common delivery cost, S = 800$
Holding cost, h = 25%
Truck capacity = 12.00
Ship Full Truckloads Independently
# Deliveries
/year
Delivery
Quantity
Transport
Cost
Holding Cost Total Cost
Days of
Inventory
Large 5.0 12 5,250$ 15,000$ 20,250$ 37
Medium 2.0 12 2,100$ 15,000$ 17,100$ 91
Small 0.7 12 700$ 15,000$ 15,700$ 274
53,050$
Optimal Separate
Lot Sizing with Multiple Customers Delivered Optimal Quantities Separately
Annual demand for Large customer, RL = 60
Annual demand for Medium customer, RM = 24
Annual demand for Small customer, RS = 8
Customer specific delivery cost, sL = 250
Customer specific delivery cost, sM = 250
Customer specific delivery cost, sS = 250
Unit Cost, CL = 10,000
Unit Cost, CM = 10,000
Unit Cost, CS = 10,000
Common delivery cost, S = 800
Holding cost, h = 25%
Truck capacity = 12.00
Ship Optimal Quantities Independently
# Deliveries
/year
Delivery
Quantity
Transport
Cost
Holding Cost Total Cost
Days of
Inventory
Large 8.5 7.10 8,874$ 8,874$ 17,748$ 22
Medium 5.3 4.49 5,612$ 5,612$ 11,225$ 34
Small 3.1 2.59 3,240$ 3,240$ 6,481$ 59
35,454$
Optimal simultaneous
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Annual demand for Litepro, RL = 60
Annual demand for Medpro, RM = 24
Annual demand for Heavypro, RH = 8
Product specific ordering cost, sL = 250$
Product specific ordering cost, sM = 250$
Product specific ordering cost, sH = 250$
Unit Cost, CL = 10,000$
Unit Cost, CM = 10,000$
Unit Cost, CH = 10,000$
Common order cost, S = 800$
Holding cost, h = 25%
Deliver All Customers Simultaneously
Delivery
Quantity
Transport
Cost
Holding Cost Total Cost
Days of
Inventory
Large 8.6 6.97 9,044$ 8,707$ 17,751$ 21.2
Medium 8.6 2.79 2,153$ 3,483$ 5,636$ 21.2
Small 8.6 0.93 2,153$ 1,161$ 3,314$ 21.2
26,702$
Tailored aggregation
Tailored Deliveries to Customers
Annual demand for Litepro, RL = 60
Annual demand for Medpro, RM = 24
Annual demand for Heavypro, RH = 8
Product specific ordering cost, sL = 250$
Product specific ordering cost, sM = 250$
Product specific ordering cost, sH = 250$
Unit Cost, CL = 10,000$
Unit Cost, CM = 10,000$
Unit Cost, CH = 10,000$
Common order cost, S =
800$
Holding cost, h = 25%
Deliver to Selected Subset of Customers in Each Delivery
Step 1: Calculate Relative Frequency
Step 1 Step 2 Step 3 Step 4
min
Large 8.5 17.3 1 9.37
Medium 5.3 11 1 9.37
Small 3.1 6.3 2 4.68
Calculate Costs
Optimal
Solution
Frequency
multiple
1/mi
# orders
/year
n
Order Size
Q
Order Cost
Holding
Cost
Total Cost
Large 9.37 6.41 9,834$ 8,008$ 17,842$
Medium 1.00 9.37 2.56 2,341$ 3,203$ 5,545$
Small 0.50 4.68 1.71 1,171$ 2,135$ 3,306$
26,693$
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