Evaluation of Unidirectional Lateral Transshipments and Substitutions in Inventory Systems
(2003) In European Journal of Operational Research 149(2). p.438-447- Abstract
- One interpretation of the model considered in this paper is a single-echelon inventory system consisting of a number of local warehouses, which normally replenish from an outside supplier. In case of a stockout at a warehouse an emergency lateral transshipment from another warehouse may be possible. However, such transshipments are only allowed in one direction, i.e., the flow structure is unidirectional. Such policies can be of interest if the warehouses have very different shortage costs. Another interpretation is substitution in an inventory system. We then instead consider different items in a single warehouse. When a demand for a low quality item cannot be met directly, the item can be replaced by another high quality item. We provide... (More)
- One interpretation of the model considered in this paper is a single-echelon inventory system consisting of a number of local warehouses, which normally replenish from an outside supplier. In case of a stockout at a warehouse an emergency lateral transshipment from another warehouse may be possible. However, such transshipments are only allowed in one direction, i.e., the flow structure is unidirectional. Such policies can be of interest if the warehouses have very different shortage costs. Another interpretation is substitution in an inventory system. We then instead consider different items in a single warehouse. When a demand for a low quality item cannot be met directly, the item can be replaced by another high quality item. We provide a simple and efficient approximate technique for policy evaluation in such systems. The performance of this technique is evaluated in a simulation study. Although the errors are not always negligible, the suggested method gives a good picture of how the considered lateral transshipments or substitutions affect the inventory system. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/636934
- author
- Axsäter, Sven LU
- organization
- publishing date
- 2003
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- Emergency transshipments, Stochastic demand, Inventory, Substitution
- in
- European Journal of Operational Research
- volume
- 149
- issue
- 2
- pages
- 438 - 447
- publisher
- Elsevier
- external identifiers
-
- wos:000183306500015
- scopus:0038522557
- ISSN
- 0377-2217
- DOI
- 10.1016/S0377-2217(02)00447-2
- language
- English
- LU publication?
- yes
- id
- 9c823283-82ab-4589-94ac-949117de727d (old id 636934)
- date added to LUP
- 2016-04-01 12:29:00
- date last changed
- 2023-01-03 17:11:26
@article{9c823283-82ab-4589-94ac-949117de727d,
abstract = {{One interpretation of the model considered in this paper is a single-echelon inventory system consisting of a number of local warehouses, which normally replenish from an outside supplier. In case of a stockout at a warehouse an emergency lateral transshipment from another warehouse may be possible. However, such transshipments are only allowed in one direction, i.e., the flow structure is unidirectional. Such policies can be of interest if the warehouses have very different shortage costs. Another interpretation is substitution in an inventory system. We then instead consider different items in a single warehouse. When a demand for a low quality item cannot be met directly, the item can be replaced by another high quality item. We provide a simple and efficient approximate technique for policy evaluation in such systems. The performance of this technique is evaluated in a simulation study. Although the errors are not always negligible, the suggested method gives a good picture of how the considered lateral transshipments or substitutions affect the inventory system.}},
author = {{Axsäter, Sven}},
issn = {{0377-2217}},
keywords = {{Emergency transshipments; Stochastic demand; Inventory; Substitution}},
language = {{eng}},
number = {{2}},
pages = {{438--447}},
publisher = {{Elsevier}},
series = {{European Journal of Operational Research}},
title = {{Evaluation of Unidirectional Lateral Transshipments and Substitutions in Inventory Systems}},
url = {{http://dx.doi.org/10.1016/S0377-2217(02)00447-2}},
doi = {{10.1016/S0377-2217(02)00447-2}},
volume = {{149}},
year = {{2003}},
}