A Multi-Location Continuous Review (Q,R) Inventory Model with Emergency Transshipments
نویسندگان
چکیده
Previous studies on multi-location inventory systems with transshipments have focused mainly on periodic review systems with no fixed ordering cost. Since continuous review systems are also frequently used in practice, this research develops a multi-location inventory transshipment model that combines the popular order-quantity, reorder-point (Q,R) system with a third parameter, the hold-back amount, which limits the degree of sharing. The degree to which transshipments improve both Type I (no-stockout probability) and Type II (fill-rate) customer service levels can be calculated using the model. Simulation studies conducted to test the validity of the approximate analytical model indicate that it performs very well over a wide range of inputs. From a managerial viewpoint, the model indicates that as the number of transshipping locations increases, partial pooling provides almost the same benefits as complete pooling.
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