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Inventory Management with Transshipments Under Fill Rate Constraints

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Operations Research Proceedings 2013

Part of the book series: Operations Research Proceedings ((ORP))

Abstract

Transshipments enable supply chains to reduce inventories while maintaining fill rates by sharing stored goods between different locations. In this paper, the supply chain is composed of the external manufacturer, the central warehouse and three identical retail outlets. Transshipment lead times are assumed to be negligible, while supply lead times are assumed to be deterministic as long as the sender is not out of stock. Any demand that cannot be satisfied immediately or after transshipments is lost or backlogged. A quick approximation method to estimate the expected transshipment quantities is provided. Simulation results strongly support the fit of the approximation. Numerical studies confirm the effect of lead time demand distributions on several performance measures.

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References

  1. Herer, Y. T., Tzur, M., & Yücesan, E. (2006). The multilocation transshipment problem. IIE Transactions, 38(3), 185–200.

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Author information

Authors and Affiliations

  1. Production and Supply Chain Management, Mercator School of Management, Universität Duisburg-Essen, Lotharstraße 65, 47057, Duisburg, Germany

    Andreas Serin

  2. Production Management and Logistics, Supply Chain Management, Technische Universität Dortmund, Martin-Schmeißer-Weg 12, 44227, Dortmund, Germany

    Bernd Hillebrand

Authors
  1. Andreas Serin
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  2. Bernd Hillebrand
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Corresponding author

Correspondence to Andreas Serin .

Editor information

Editors and Affiliations

  1. Econometric Institute, Erasmus School of Economics, Erasmus University Rotterdam, Rotterdam, The Netherlands

    Dennis Huisman

  2. Erasmus School of Economics, Erasmus University Rotterdam, Rotterdam, The Netherlands

    Ilse Louwerse

  3. Erasmus School of Economics, Erasmus University Rotterdam, Rotterdam, The Netherlands

    Albert P.M. Wagelmans

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© 2014 Springer International Publishing Switzerland

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Cite this paper

Serin, A., Hillebrand, B. (2014). Inventory Management with Transshipments Under Fill Rate Constraints. In: Huisman, D., Louwerse, I., Wagelmans, A. (eds) Operations Research Proceedings 2013. Operations Research Proceedings. Springer, Cham. https://doi.org/10.1007/978-3-319-07001-8_59

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