Fixed shipping cost allocation for just-in-time (JIT) lot-splitting

dc.contributor.authorSon, Joong
dc.date.accessioned2021-06-18
dc.date.accessioned2022-05-31T01:44:01Z
dc.date.available2022-05-31T01:44:01Z
dc.date.issued2019
dc.description.abstractThis paper studies benefits of just-in-time (JIT) lot-splitting and multiple shipments for an order placed by the retailer in a two-stage supply chain. In a typical order placement and delivery setting between the buyer and the vendor, the treatment of the shipping cost is not clear and is contingent on negotiations between the parties involved. The outcome of such settlement often results in suboptimal practices in the supply chain. This paper investigates how the optimal and incentive aligned allocation of the fixed shipping cost from the manufacturer to the retailer can be obtained with the lot-splitting policy. Numerical results indicate that both the lot-splitting policy parameter and the fixed cost structures (e.g., fixed shipping to ordering cost ratio) command significant impact on the shipment frequency and the supply chain cost. The paper further proposes an approach to identify settings beneficial for the system.
dc.format.extent948.64KB
dc.format.mimetypePDF
dc.identifierhttps://doi.org/10.31387/oscm0390244
dc.identifier.citationSon, J. Y. (2019). Fixed shipping cost allocation for just-in-time JIT lot-splitting. Operations and Supply Chain Management: An International Journal, 12 (4), 212-224. DOI: 10.31387/oscm0390244
dc.identifier.urihttps://hdl.handle.net/20.500.14078/2356
dc.languageEnglish
dc.language.isoen
dc.rightsAll Rights Reserved
dc.subjectjust-in-time
dc.subjectlot-splitting
dc.subjectshipping cost allocation
dc.subjectincentives
dc.titleFixed shipping cost allocation for just-in-time (JIT) lot-splitting
dc.typeArticle
dspace.entity.type
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