Journal
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
Volume 230, Issue 1, Pages 42-52Publisher
ELSEVIER
DOI: 10.1016/j.ejor.2013.03.041
Keywords
Lateral transshipments; Inventory control; Multiple locations; Markov decision problem
Ask authors/readers for more resources
Lateral transshipments are an effective strategy to pool inventories. We present a Semi-Markov decision problem formulation for proactive and reactive transshipments in a multi-location continuous review distribution inventory system with Poisson demand and one-for-one replenishment policy. For a two-location model we state the monotonicity of an optimal policy. In a numerical study, we compare the benefits of proactive and different reactive transshipment rules: The benefits of proactive transshipments are the largest for networks with intermediate opportunities of demand pooling and the difference between alternative reactive transshipment rules is negligible. (c) 2013 Elsevier B.V. All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available