An Optimal Policy for the Dynamic Transportation-Inventory Model with Deteriorating Items.

This paper addresses the dynamic lot sizing problem of a Wagner-Whitin type in which the transportation mode as well as the order size of a deteriorating product are considered simultaneously. The problem is presented in a forward formulation. An algorithm is developed which utilizes properties of the optimal solution and planning horizon procedure. An actual case involving palm oil industry is solved and the algorithm is shown to be efficient in computation. [ABSTRACT FROM AUTHOR]