A MATHEMATICAL-MODEL TO MINIMIZE THE INVENTORY AND TRANSPORTATION COSTS IN THE LOGISTICS SYSTEMS
In this paper we consider a logistics system for parts manufacturer distribution center(depot) to supply the parts to the parent company. And we formulate the mathematical model to minimize the sum of inventory holding costs at the depot, and the transportation and inventory costs at parts manufacturer. We apply the model to an actual automobile parts manufacturer to demonstrate the effectiveness of the proposed model.
logistics mathematical model jit production system