Assessing pooling policies in multi-retailer inventory system with lost sales

In this paper, we address a multi-retailer inventory system with transshipment. Transshipment is used as recourse action occurring after an expected demand is realized. The remaining unsatisfied demand after transshipment is lost. We use various pooling policies for transshipment. We also develop a simulation model for such system that allows us to characterize the effects of pooling policies with/without constraints on system performance measures. The constraints are system lost sales per period and capacity per tranship.

[1]  Anil Kukreja,et al.  A model for lumpy demand parts in a multi-location inventory system with transshipments , 2005, Comput. Oper. Res..

[2]  Helmut Schneider,et al.  Approximate solutions for multi-location inventory systems with transshipments , 2005 .

[3]  Stefan Minner,et al.  An improved heuristic for deciding on emergency transshipments , 2003, Eur. J. Oper. Res..

[4]  Michael C. Fu,et al.  Estimating customer service in a two-location continuous review inventory model with emergency transshipments , 2003, Eur. J. Oper. Res..

[5]  Philip T. Evers,et al.  Heuristics for assessing emergency transshipments , 2001, Eur. J. Oper. Res..

[6]  George Tagaras,et al.  Pooling in multi-location periodic inventory distribution systems , 1999 .

[7]  Philip T. Evers,et al.  THE INFLUENCE OF INDIVIDUAL COST FACTORS ON THE USE OF EMERGENCY TRANSSHIPMENTS , 1998 .

[8]  Morris A. Cohen,et al.  Pooling in two-location inventory systems with non-negligible replenishment lead times , 1992 .

[9]  Sven Axsäter,et al.  Modelling Emergency Lateral Transshipments in Inventory Systems , 1990 .

[10]  Helmut Schneider,et al.  Power approximation for computing ( s , S ) policies using service level , 1990 .

[11]  Lawrence W. Robinson,et al.  Optimal and Approximate Policies in Multiperiod, Multilocation Inventory Models with Transshipments , 1990, Oper. Res..

[12]  Hau L. Lee.  A multi-echelon inventory model for repairable items with emergency lateral transshipments , 1987 .

[13]  Craig C. Sherbrooke,et al.  Metric: A Multi-Echelon Technique for Recoverable Item Control , 1968, Oper. Res..

[14]  H. M. Wagner,et al.  An Empirical Study of Exactly and Approximately Optimal Inventory Policies , 1965 .

[15]  David F. Pyke,et al.  Inventory management and production planning and scheduling , 1998 .