A Multi Echelon Location-Inventory Model with Lateral Transshipment

A Scenario-Based Inventory Optimization Approach for a Multi- Echelon Network Considering Lateral Transshipment

Nowadays, Companies have to deal with an uncertain demand which is more difficult to handle when it has a non-stationary pattern. Simultaneous decrease of customer service and increase of stock costs are the most significant effects of such demand uncertainty. To deal with this issue, inventory optimization models must be adapted to cover a multi-echelon network structure and to consider altern...

Optimal lateral transshipment policy for a two location inventory problem

We consider an inventory model for spare parts with two stockpoints, providing repairable parts for a critical component of advanced technical systems. As downtime costs for these systems are huge, ready-for-use spare parts are kept on stock, to be able to quickly respond to a breakdown of a system. We allow for lateral transshipments of parts between the stockpoints upon a demand arrival for a...

Optimal inventory policy for a Markovian two-echelon system with returns and lateral transshipment

In this paper, we consider a Markovian model for a two-echelon inventory/return system. The system consists of a supply plant with infinite capacity and a central warehouse for inventory and returns. There are also a number of local warehouses which are also capable of re-manufacturing of returns to products. To obtain a high service level of handling inventory and returns, lateral transshipmen...

A Location-Inventory Model with Lateral Transshipments

Approximate dynamic programming for lateral transshipment problems in multi-location inventory systems

Companies commonly allocate their inventories across multiple locations based on their historical sales rates. However, random fluctuations in customer purchases, such as those caused by weather conditions and other external factors, might cause significant deviations from expected demand, leading to excess stock in some locations and stockouts in others. To fix this mismatch, companies often t...