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Fully Loaded Direct Shipping Strategy in One Warehouse/ N Retailer Systems without Central Inventories
Journal article   Peer reviewed

Fully Loaded Direct Shipping Strategy in One Warehouse/ N Retailer Systems without Central Inventories

Philip C. Jones and Tianbing Qian
Transportation science, Vol.31(2), pp.193-195
05/01/1997
DOI: 10.1287/trsc.31.2.193

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Abstract

In this paper, we consider one warehouse/multiple retailer systems with transportation costs. The planning horizon is infinite and the warehouse keeps no central inventory. It is shown that the fully loaded direct shipping strategy is optimal among all possible shipping/allocation strategies if the truck capacity is smaller than a certain quantity, and a bound is provided for the general case.

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