Service differentiation through selective lateral transshipments
نویسندگان
چکیده
We consider a multi-item spare parts optimization problem with multiple warehouses and two customer classes, where lateral transshipments are used as a differentiation tool. Specifically, premium requests that cannot be met from stock at their preferred warehouse may be satisfied from stock at other warehouses (so-called lateral transshipments). We first derive approximations for the mean waiting time per class in a single-item model with selective lateral transshipments. Next, we embed our method in a multi-item model minimizing the holding costs and costs of lateral and emergency shipments from upstream locations in the network. Compared to the strategy where selective use of emergency shipments is the only differentiation option, we show that the addition of selective lateral transshipments can lead to significant further cost savings (14% on average). Adding the option of stock reservation for premium customers (so-called critical levels) appears to have little added value.
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ورودعنوان ژورنال:
- European Journal of Operational Research
دوره 237 شماره
صفحات -
تاریخ انتشار 2014