Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You and Your Team.

Learn More →

Cost Savings for Inbound Freight The Effects of Quantity Discounts and Transport Rate Breaks on Inbound Freight Consolidation Strategies

Cost Savings for Inbound Freight The Effects of Quantity Discounts and Transport Rate Breaks on... Addresses a number of issues relating to determining whetherproducts should be ordered independently and therefore shipped as asingleproduct order, or coordinated and shipped as a group, ormultiproduct, order from a single source. Factors which might influencethe decision include the level or volume of demand, the distribution ofdemand across products, the weight of items and the attractiveness ofthe quantity discount offered. Uses an optimal inventorytheoreticmodel, that incorporates transport weight breaks and quantity discounts,to assess when product orders should be combined and what productsshould be ordered separately. The effects of these decisions on theorder interval, the number of order groupings, the proportion of itemsordered independently, the proportion of attractive discounts forgone infavour of consolidation, and the relative cost savings, are examinedusing an extensive set of simulated data that are based on a firm in theautomobile industry supply chain. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Physical Distribution & Logistics Management Emerald Publishing

Cost Savings for Inbound Freight The Effects of Quantity Discounts and Transport Rate Breaks on Inbound Freight Consolidation Strategies

Loading next page...
 
/lp/emerald-publishing/cost-savings-for-inbound-freight-the-effects-of-quantity-discounts-and-s8hAUuHsfl
Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0960-0035
DOI
10.1108/09600039210022961
Publisher site
See Article on Publisher Site

Abstract

Addresses a number of issues relating to determining whetherproducts should be ordered independently and therefore shipped as asingleproduct order, or coordinated and shipped as a group, ormultiproduct, order from a single source. Factors which might influencethe decision include the level or volume of demand, the distribution ofdemand across products, the weight of items and the attractiveness ofthe quantity discount offered. Uses an optimal inventorytheoreticmodel, that incorporates transport weight breaks and quantity discounts,to assess when product orders should be combined and what productsshould be ordered separately. The effects of these decisions on theorder interval, the number of order groupings, the proportion of itemsordered independently, the proportion of attractive discounts forgone infavour of consolidation, and the relative cost savings, are examinedusing an extensive set of simulated data that are based on a firm in theautomobile industry supply chain.

Journal

International Journal of Physical Distribution & Logistics ManagementEmerald Publishing

Published: Sep 1, 1992

There are no references for this article.