Coordinating inventory management and transportation decisions in a third-party logistics distribution network

Dimitris Zissis, Alena Puchkova, Vaggelis Giannikas, Wenrong Lu

Research output: Contribution to conferenceAbstractpeer-review


We consider a distribution network that integrates supply, storage, and transportation activities, seeking to examine how coordinating inventory and transportation decisions affects performance. We hypothesise that via the coordination of inventory and transportation decisions, the distribution network could succeed substantial cost savings and im- proved service levels. We develop an optimisation model that supports replenishment decisions in order to deliver products on time and meet customer demand, utilising an existing warehouse network and a fleet of vehicles. Furthermore, we consider the distribution network as a dynamic environment in which several conditions can change affecting the cost structures, demand and time constraints, thus the optimal replenishment decisions. Our results indicate that the computation time is reasonable for the requirements of this business problem. As a result, the proposed model is flexible to determine new strategies, allowing immediate actions. The proposed work is evaluated through a case study in a third-part logistics distribution network in China.
Original languageEnglish
Number of pages1
Publication statusPublished - 26 Jun 2019
Event30th European Conference on Operational Research - Dublin, Ireland
Duration: 23 Jun 201926 Jun 2019


Conference30th European Conference on Operational Research
Abbreviated titleEURO
Internet address


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