Part Special Issue Paper: Modelling and Analysis in Supply Chain Management Systems
Journal of the Operational Research Society (2000) 51, 1136–1147. doi:10.1057/palgrave.jors.2600062
Approximate analysis of the delivery splitting model
F Janssen1, Ton De Kok2 and F van der D Schouten3
- 1CQM Eindhoven, The Netherlands
- 2Eindhoven University of Technology, The Netherlands
- 3Tilburg University, The Netherlands
Correspondence: Dr F Janssen, CQM, Vonderweg 11, Building HCZ-3, P.O. Box 414, 5600 AK Eindhoven, The Netherlands
Received April 1999; Accepted December 1999.
Abstract
The concept of order splitting has been proposed primarily to enable buyers to obtain substantial inventory savings. In this paper we investigate the order splitting concept from the suppliers point of view, referred to as delivery splitting. We will show that for the supplier considerable cost savings can be obtained by using the concept of delivery splitting, although the motivation and the practical implementation can be different for buyer and supplier. Also we will show that an analytical (although approximative) treatment of the delivery splitting concept is feasible, which brings the concept within reach of practical implementation.
Keywords:
inventory, demand management, order splitting
