Truckload
Lot Sizing with Truckload Sourcing from Each Supplier
Annual demand for Large customer, RL = 120,000
Annual demand for Medium customer, RM = 60,000
Annual demand for Small customer, RS = 12,000
Customer specific delivery cost, sL = 400$
Customer specific delivery cost, sM = 400$
Customer specific delivery cost, sS = 400$
Unit Cost, CL = 10.00$
Unit Cost, CM = 10.00$
Unit Cost, CS = 10.00$
Common delivery cost, S = 1,000$
Holding cost, h = 25%
Truck capacity = 12,000.00
Ship Full Truckloads Independently
# Deliveries
/year
Delivery
Quantity
Transport Cost Holding Cost Total Cost
Days of
Inventory
Large 10.0 12,000 14,000$ 15,000$ 29,000$ 18
Medium 5.0 12,000 7,000$ 15,000$ 22,000$ 37
Small 1.0 12,000 1,400$ 15,000$ 16,400$ 183
67,400$
Optimal Separate
Lot Sizing with Multiple Supplier Delivering Optimal Quantities Seperately
Annual demand for Large customer, RL = 120,000
Annual demand for Medium customer, RM = 60,000
Annual demand for Small customer, RS = 12,000
Customer specific delivery cost, sL = 400
Customer specific delivery cost, sM = 400
Customer specific delivery cost, sS = 400
Unit Cost, CL = 10
Unit Cost, CM = 10
Unit Cost, CS = 10
Common delivery cost, S = 1,000
Holding cost, h = 25%
Truck capacity = 12,000.00
Ship Optimal Quantities Independently
# Deliveries
/year
Delivery
Quantity
Transport
Cost
Holding Cost Total Cost
Days of
Inventory
Large 10.4 11,593.10 14,491$ 14,491$ 28,983$ 18
Medium 7.3 8,197.56 10,247$ 10,247$ 20,494$ 25
Small 3.3 3,666.06 4,583$ 4,583$ 9,165$ 56
58,642$
Optimal simultaneous
`
Annual demand for Litepro, RL = 120,000
Annual demand for Medpro, RM = 60,000
Annual demand for Heavypro, RH = 12,000
Product specific ordering cost, sL = 400$
Product specific ordering cost, sM = 400$
Product specific ordering cost, sH = 400$
Unit Cost, CL = 10$
Unit Cost, CM = 10$
Unit Cost, CH = 10$
Common order cost, S = 1,000$
Holding cost, h = 25%
Deliver all Customers Simultaneously
# Deliveries
/year
Delivery
Quantity
Transport
Cost
Holding Cost Total Cost
Days of
Inventory
Large 10.4 11,489.13 14,623$ 14,361$ 28,984$ 17.5
Medium 10.4 5,744.56 4,178$ 7,181$ 11,359$ 17.5
Small 10.4 1,148.91 4,178$ 1,436$ 5,614$ 17.5
45,957$
Tailored aggregation
Tailored Deliveries from Suppliers
Annual demand for Litepro, RL = 120,000
Annual demand for Medpro, RM = 60,000
Annual demand for Heavypro, RH = 12,000
Product specific ordering cost, sL = 400$
Product specific ordering cost, sM = 400$
Product specific ordering cost, sH = 400$
Unit Cost, CL = 10$
Unit Cost, CM = 10$
Unit Cost, CH = 10$
Common order cost, S =
1,000$
Holding cost, h = 25%
Deliver from Selected Subset of Suppliers in Each Delivery
Step 1: Calculate Relative Frequency
Step 1 Step 2 Step 3 Step 4
min
Large 10.4 19.4 1 11.29
Medium 7.3 13.7 1 11.29
Small 3.3 6.1 2 5.65
Calculate Costs
Optimal
Solution
Frequency
multiple
1/mi
# orders
/year
n
Order Size
Q
Order Cost
Holding
Cost
Total Cost
Large 11.29 10,627.38 15,808$ 13,284$ 29,092$
Medium 1.00 11.29 5,313.69 4,517$ 6,642$ 11,159$
Small 0.50 5.65 2,125.48 2,258$ 2,657$ 4,915$
45,166$
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