Approximate solutions for multi-location inventory systems with transshipments

Hu, Jason; Watson, Edward; Schneider, Helmut

doi:10.1016/j.ijpe.2004.05.003

Cited by 24 publications

(13 citation statements)

References 26 publications

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“…Shipments are assumed to be fast enough to fill the shortage in stock (Tiacci & Saetta, 2011). There are subtle differences between the models within the previous reactive LT studies (Archibald, 2007;Archibald, Black, & Glazebrook, 2009;Hu, Watson, & Schneider, 2005;Huo & Li, 2007;Lau & Nakandala, 2012;Lee, 1987). However, matching the source to the receiving destination optimally remains a research challenge.…”

Section: Literature Reviewmentioning

confidence: 99%

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A case-based roadmap for lateral transshipment in supply chain inventory management

Lau

Nakandala

Shum

2016

JISTEM

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Manufacturers and wholesalers are increasingly cost conscious in response to today's hyper-competitive environment. Lateral transshipment (LT) has been proposed as a viable solution to drive total inventory costs down whilst increasing customer service level. Our study proposes five LT decision rules with a case-based roadmap to guide professional inventory management. Results of this large fast moving consumer goods case study company demonstrate superior inventory management performance with implementing a combined reactive and proactive LT strategy to determine whether to transship emergency stock from other warehouse or to backorder from suppliers, size of transshipment, favorite wholesaler, preferred supplier, and extra quantity for preventive LT, which are the key LT decision points among the professional supply chain management practitioners.

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Section: Literature Reviewmentioning

confidence: 99%

“…For periodicreview LT studies, the focus in the literature is frequently on single echelon system. Hu et al (2005) investigate a multiple retailer distribution system where emergency transshipments are permitted to determine the effect of transshipments on ordering policies. They compared the (s, S) ordering policy, i.e.…”

Section: Literature Reviewmentioning

confidence: 99%

A case-based roadmap for lateral transshipment in supply chain inventory management

Lau

Nakandala

Shum

2016

JISTEM

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“…They provide interesting structural properties of optimal policies which enhance our understanding of the important issues which motivate transshipments and allow us to develop an efficient polynomial time algorithm for obtaining the optimal strategy. Recently, (Hu et al, 2005) adopted the major assumptions in (Krishnan & Rao, 1965) for an N-location inventory system but extended their one-period, base-stock inventory model to a multi-period, general (s, S)-type model. While (Robinson, 1990) considers the simultaneous determination of base stock inventory policies at each store as well as the transshipment decisions, they focus on the development of an appropriate (s,S)-type policy for a multilocation inventory system with centralized ordering.…”

Section: Inventory Control Policy (S S)mentioning

confidence: 99%

“…(Gross, 1963), (Krishnan & Rao, 1965), (Das, 1975), (Hoadley & Heyman, 1977), (Cohen et al, 1986), (Tagaras, & 1999, (Robinson, 1990), , (Archibald et al, 1997), (Rudi et al, 2001), (Herer et al, 2002). (Krishnan & Rao, 1965), (Cantagalli, 1987), (Tagaras, & 1999, (Robinson, 1990), , (Archibald et al, 1997), (Rudi et al, 2001), (Herer et al, 2002), (Silver & Peterson, 1985), (Hu et al, 2005). Table 2.…”

Section: Inventory Control Policy (S S)mentioning

confidence: 99%

Transshipment Problems in Supply ChainSystems: Review and Extensions

Chiou¹

2008

Supply Chain

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“…Moors and Strijbosch [4] derived an exact formula for the average stockout in a replenishment cycle of (s, S) policy where stationary gamma demand process and deterministic lead time are used. Hu et al [5] presented a multi-retailer system with centralised ordering in (s, S) policy. Tlili et al [6] proposed a two echelon inventory control system including an outside supplier, a warehouse and two retailers.…”

Section: Introductionmentioning

confidence: 99%

Optimization via Simulation for Inventory Control Policies and Supplier Selection

Göçken¹,

Dosdoğru²,

Boru³

2017

Int. j. simul. model.

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The need to explicitly select the best review model in inventory control system is greater than ever because managing and controlling inventories are difficult under intense competition. In this study, three important questions are answered in inventory control system: which review model (periodic or continuous) should be used; which objective function of review model should be used to increase competitiveness of the supply chain; how to find the optimal values of initial inventory, reorder point, and order-up-to level for each Distribution Centre (DC) and each Supplier. We proposed an Optimization via Simulation (OvS) approach to determine the best inventory control system with supplier selection and to obtain a remarkable amount of saving while increasing the competitive edge in a fully stochastic supply chain environment. According to the results, total supply chain cost can be improved at least 22 % and at most 66 % on average with proposed continuous review model.

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Approximate solutions for multi-location inventory systems with transshipments

Cited by 24 publications

References 26 publications

A case-based roadmap for lateral transshipment in supply chain inventory management

A case-based roadmap for lateral transshipment in supply chain inventory management

Transshipment Problems in Supply ChainSystems: Review and Extensions

Optimization via Simulation for Inventory Control Policies and Supplier Selection

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