A distribution inventory model with transshipments from a support warehouse
(2013) In IIE Transactions 45(3). p.309-322- Abstract
- Abstract in Undetermined
This article considers a distribution inventory system consisting of N retailers and a regional support warehouse, all being replenished from a central warehouse/outside supplier. For the case where stock-outs occur, the retailers receive transshipments from the support warehouse at an extra cost. A model is presented for cost evaluation and optimization of the reorder points in the system under fill rate constraints. The solution method is designed to handle large real-life systems and is fast enough to be directly implemented in practice. A numerical study illustrates that (i) the model renders near-optimal solutions; (ii) the value of using a support warehouse can be significant even for large transshipment... (More) - Abstract in Undetermined
This article considers a distribution inventory system consisting of N retailers and a regional support warehouse, all being replenished from a central warehouse/outside supplier. For the case where stock-outs occur, the retailers receive transshipments from the support warehouse at an extra cost. A model is presented for cost evaluation and optimization of the reorder points in the system under fill rate constraints. The solution method is designed to handle large real-life systems and is fast enough to be directly implemented in practice. A numerical study illustrates that (i) the model renders near-optimal solutions; (ii) the value of using a support warehouse can be significant even for large transshipment costs; and (iii) significant cost savings can be obtained using the proposed model. Using real data for a sample of 50 representative products, the proposed model reduces the expected holding and transshipment costs by 29% while still meeting target fill rates. [Supplemental materials are available for this article. Go to the publisher's online edition of IIE Transactions to view the supplemental file.] (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/2019126
- author
- Axsäter, Sven LU ; Howard, Christian LU and Marklund, Johan LU
- organization
- publishing date
- 2013
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- spare parts, Inventory, multi-echelon, stochastic demand, transshipments
- in
- IIE Transactions
- volume
- 45
- issue
- 3
- pages
- 309 - 322
- publisher
- Taylor & Francis
- external identifiers
-
- wos:000312592000006
- scopus:84876728863
- ISSN
- 0740-817X
- DOI
- 10.1080/0740817X.2012.706375
- language
- English
- LU publication?
- yes
- id
- 6c94cebd-804f-4597-ab06-c039b6db1c87 (old id 2019126)
- date added to LUP
- 2016-04-01 10:06:33
- date last changed
- 2023-02-02 23:36:13
@article{6c94cebd-804f-4597-ab06-c039b6db1c87,
abstract = {{Abstract in Undetermined<br/>This article considers a distribution inventory system consisting of N retailers and a regional support warehouse, all being replenished from a central warehouse/outside supplier. For the case where stock-outs occur, the retailers receive transshipments from the support warehouse at an extra cost. A model is presented for cost evaluation and optimization of the reorder points in the system under fill rate constraints. The solution method is designed to handle large real-life systems and is fast enough to be directly implemented in practice. A numerical study illustrates that (i) the model renders near-optimal solutions; (ii) the value of using a support warehouse can be significant even for large transshipment costs; and (iii) significant cost savings can be obtained using the proposed model. Using real data for a sample of 50 representative products, the proposed model reduces the expected holding and transshipment costs by 29% while still meeting target fill rates. [Supplemental materials are available for this article. Go to the publisher's online edition of IIE Transactions to view the supplemental file.]}},
author = {{Axsäter, Sven and Howard, Christian and Marklund, Johan}},
issn = {{0740-817X}},
keywords = {{spare parts; Inventory; multi-echelon; stochastic demand; transshipments}},
language = {{eng}},
number = {{3}},
pages = {{309--322}},
publisher = {{Taylor & Francis}},
series = {{IIE Transactions}},
title = {{A distribution inventory model with transshipments from a support warehouse}},
url = {{http://dx.doi.org/10.1080/0740817X.2012.706375}},
doi = {{10.1080/0740817X.2012.706375}},
volume = {{45}},
year = {{2013}},
}