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An inventory model with unidirectional lateral transshipments

In English

Författare

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.

Publiceringsår

2010

Språk

Engelska

Sidor

725-732

Publikation/Tidskrift/Serie

European Journal of Operational Research

Volym

200

Issue

3

Dokumenttyp

Artikel i tidskrift

Förlag

Elsevier

Ämne

  • Transport Systems and Logistics
  • Probability Theory and Statistics

Nyckelord

  • Inventory
  • Lateral transshipments
  • Stochastic demand

Status

Published

ISBN/ISSN/Övrigt

  • ISSN: 0377-2217