INVENTORY AND TRANSPORTATION COST MINIMIZATION IN THE DELIVERY LOGISTIC OF SWINE FLU VACCINE
In this paper,we present a mathematical model of delivery logistics of swine ﬂu vaccine in a rural area. The objective is to make the medicine available at the Primary health centres of that area in such a way that the total cost (purchasing and cartage) of obtaining the ﬂu vaccination is minimized and the demand of the demand centres is met. One more constraint is taken into consideration: once the bottle of the medicine is opened, it has to be given to a ﬁxed number of patients requiring swine ﬂu vaccine simultaneously failing which the proportion of unused
medicine become obsolete and can not be administered to the patients. But if the bottle of medicine could not be used fully at a time then, the unused medicine can be sold back at a discounted price. Under such conditions, our next objective is to determine the size of order that must be placed so that the expected total proﬁt per year is maximized.The methodology to achieve this objective is: ﬁrst, formulate the problem as a ﬁxed charge capacitated transportation model with bounds on rim conditions to determine the number of units that should be purchased from
various distribution centres such that the total cost (purchasing cost cartage) of obtaining the medicine is minimized. Further,model the problem as an inventory model to determine the size of order.
Keywords: Logistics, capacitated, transportation problem, inventory, ﬁxed charge.
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