A semi-Markov model with holdout transshipment policy and phase-type exponential lead time

In this paper, a semi-Markov decision model of a two-location inventory system with holdout transshipment policy is reviewed under the assumption of phase-type exponential replenishment lead time rather than exponential lead time. The phase-type exponential lead time more closely approximates fixed lead time as the number of phases increases. Unlike past research in this area which has concentrated on the simple transshipment policies of complete pooling or no pooling, the research presented in this paper endeavors to develop an understanding of a more general class of transshipment policy. In addition, we propose an effective method to approximate the dynamic holdout transshipment policy.

[1]  Erhan Kutanoglu,et al.  An inventory sharing and allocation method for a multi-location service parts logistics network with time-based service levels , 2009, Eur. J. Oper. Res..

[2]  Jiaqi Zhang.  Holdout transshipment policy in two-location inventory systems , 2009 .

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

[4]  Fredrik Olsson,et al.  An inventory model with unidirectional lateral transshipments , 2010, Eur. J. Oper. Res..

[5]  Thomas W. Archibald,et al.  Modelling replenishment and transshipment decisions in periodic review multilocation inventory systems , 2007, J. Oper. Res. Soc..

[6]  Erhan Kutanoglu.  Insights into inventory sharing in service parts logistics systems with time-based service levels , 2008, Comput. Ind. Eng..

[7]  Sven Axsäter,et al.  Evaluation of unidirectional lateral transshipments and substitutions in inventory systems , 2003, Eur. J. Oper. Res..

[8]  Ralf W. Seifert,et al.  Integrating Direct and Indirect Sales Channels Under Decentralized Decision Making , 2006 .

[9]  Uday S. Karmarkar.  The Multilocation Multiperiod Inventory Problem: Bounds and Approximations , 1987 .

[10]  L. Thomas,et al.  An optimal policy for a two depot inventory problem with stock transfer , 1997 .

[11]  Jovan Grahovac,et al.  Sharing and Lateral Transshipment of Inventory in a Supply Chain with Expensive Low-Demand Items , 2001, Manag. Sci..

[12]  Casey A. Volino,et al.  A First Course in Stochastic Models , 2005, Technometrics.

[13]  Izak Duenyas,et al.  Optimal Joint Inventory and Transshipment Control Under Uncertain Capacity , 2005, Oper. Res..

[14]  K. H. Daniel,et al.  Multistage inventory models and techniques , 1965 .

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

[16]  James H. Bookbinder,et al.  Stock redistribution in two-echelon logistics systems , 1998, J. Oper. Res. Soc..

[17]  Martin Dresner,et al.  A Two-Location Inventory Model With Transshipments in a Competitive Environment , 2010 .

[18]  W. D. Ray,et al.  Stochastic Models: An Algorithmic Approach , 1995 .

[19]  Hui Zhao,et al.  Optimal Dynamic Production and Inventory Transshipment Policies for a Two-Location Make-to-Stock System , 2008, Oper. Res..