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Designing optimal routing strategies for a manufacturer: A case study |
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| Authors: | Qiu-Hong Zhao Shou-Yang Wang Gio-Ping Xia K.-K. Lai |
| Affiliation: | 1. School of Economics and Management , Beijing University of Aeronautics and Astronautics , Beijing, 100083, China;2. Institute of Systems Science, Academy of Mathematics and Systems Sciences , Chinese Academy of Sciences , Beijing, 100080, China;3. Department of Management Sciences , City University of Hong Kong , Tat Chee Avenue, Kowloon, Hong Kong |
| Abstract: | A study of the vehicle transportation system for a manufacturer is presented. An algorithm based on a dynamic programming model is developed so as to find the optimal transportation arrangements referring to the composition of the vehicles as well as the routing of these vehicles. The algorithm is run under the current condition as well as under a number of different scenarios. It is shown the algorithm can solve the problem with reduced computational complexity. The findings and suggestions resulting from the study can help the department manager in reviewing current operations arrangement and determining future operations arrangements. |
| Keywords: | Transportation System Two-stage Transportation Network Dynamic Programming Model Quantitative Sensitivity Criterion |