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        Domination Rule For The Dynamic Multi-Route Transportation Problem Under Demand Uncertainty

        Suk-Chul Rim(임석철),JingJing Jiang(장정정) 한국SCM학회 2014 한국SCM학회지 Vol.14 No.1

        In today’s global manufacturing environment, products are usually transported globally to meet the changing demand of the customer, from an origin to a destination, multiple routes are usually available, with different lead times and unit transportation costs. In this paper, we consider the case where more than two routes are available. Assuming that the length of lead time and unit transportation cost are in reverse order for m (m>2) routes, we mathematically formulate the problem. We present a domination rule where some of the (m-2) in-between routes can be dominated by the fastest and slowest route in minimizing the long-term average total cost, while keeping the shortage rate at a certain level for a single product. In case all in-between routes are dominated, the problem becomes the two-route case, whose approximate optimal solution is known.

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