We consider a continuous-time, single-echelon, multi-location inventory model with Poisson demand processes. In case of a stock-out at a local warehouse, a demand can be fulfilled via a lateral transshipment (LT). Each warehouse is assigned a predetermined sequence of other warehouses where it will request for an LT. However, a warehouse can hold its last part(s) back from such a request. This ...

This paper mainly proposes a coordination mechanism for supply chain system containing multiple retailers and one supplier. According to the proposed mechanism, lateral transshipments are performed among while revenue-sharing contract is used allocate revenue caused by transshipment. Meanwhile, buy-back coordinate retailer We use with supplier two as an example demonstrate effectiveness of mech...

In a transshipment game, supply chain agents cooperate to transship surplus products. This note studies the effect of size of transshipment coalitions on the optimal production/order quantities. It characterizes these quantities for transshipment games with identical newsvendors and normally distributed market demands. It also gives a closed form formula for equal allocation in their cores.

This paper focuses on addressing uncertainties in disasters when considering lateral transshipment opportunities for pre-positioning relief supplies. To deal with uncertain demands the problem is formulated as a two-stage stochastic programming model, which decides simultaneously locations of facilities and allocations supplies to demand nodes. Meanwhile, different damage levels caused by are c...

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 concentr...

This paper studies a distribution system consisting of multiple retail locations with transshipment operations among the retailers. Due to the difficulty in computing the optimal solution imposed by the transshipment operations and in estimating shortage cost from a practical perspective, we propose a robust optimization framework for analyzing the impact of transshipment operations on such a d...