Service differentiation through selective lateral transshipments

Inventory models with lateral transshipments: A review

Lateral transshipments within an inventory system are stock movements between locations of the same echelon. These transshipments can be conducted periodically at predetermined points in time to proactively redistribute stock, or they can be used reactively as a method of meeting demand which cannot be satisfied from stock on hand. The elements of an inventory system considered, e.g. size, cost...

Service parts inventory control with lateral transshipment and pipeline stockflexibility

In equipment-intensive industries such as truck, electronics, aircraft and dredging vessel manufacturing, service parts are often slow moving items for which the transshipment time is not negligible. However, this aspect is hardly considered in the existing service logistics literature. In this paper, we consider this aspect and propose a customer-oriented service measure which takes into accou...

Greedy Local Improvement of SPEA2 Algorithm to Solve the Multiobjective Capacitated Transshipment Problem

We consider a multi-location inventory system where inventory choices at each location are centrally coordinated through the use of lateral Transshipments. This cooperation between different locations of the same echelon level often leads to cost reduction and service level improvement. However, when some locations face embarrassing storage capacity limits, inventory sharing through transshipme...

A Semi-Markov decision problem for proactive and reactive transshipments between multiple warehouses

Lateral transshipments are an effective strategy to pool inventories. We present an exact Semi-Markov decision problem formulation for proactive and reactive transshipments in a multi-location continuous review distribution inventory system with Poisson demand and exponential replenishment lead times. In a numerical study, we investigate the benefits of proactive over different reactive transsh...

A Location-Inventory Model with Lateral Transshipments