The browser you are using is not supported by this website. All versions of Internet Explorer are no longer supported, either by us or Microsoft (read more here: https://www.microsoft.com/en-us/microsoft-365/windows/end-of-ie-support).

Please use a modern browser to fully experience our website, such as the newest versions of Edge, Chrome, Firefox or Safari etc.

An inventory model with unidirectional lateral transshipments

På svenska

Author

Summary, in English

This paper deals with a continuous review inventory system with Poisson demand, in which lateral transshipments are allowed. In case of a shortage at a location, another location acts as a supplier, if it is possible. A common assumption in earlier papers is that transshipments are allowed between all locations. This network configuration may, however, not be the best choice for many reasons. one such reason is that it may be difficult to establish contracts between locations regarding the design of the transshipment policy. Another reason is that a system with many transshipment links is much more complex than a system with few transshipment links. In this paper, we study a system where transshipments are allowed only in one direction. This may be a reasonable policy if the locations have very different backorder/lost sales costs. Our approach is relatively simple and fast, and works well in most cases. (C) 2009 Elsevier B.V. All rights reserved.

Publishing year

2010

Language

English

Pages

725-732

Publication/Series

European Journal of Operational Research

Volume

200

Issue

3

Document type

Journal article

Publisher

Elsevier

Topic

  • Transport Systems and Logistics
  • Probability Theory and Statistics

Keywords

  • Inventory
  • Lateral transshipments
  • Stochastic demand

Status

Published

ISBN/ISSN/Other

  • ISSN: 0377-2217