Evaluation of two transshipment policies in a two-location decentralized inventory system under partial backordering

This research investigates the replenishment and transshipment decisions in a two-retailer inventory system with a single selling season. Both emergency lateral transshipment (ELT) and preventive lateral transshipment (PLT) are investigated. ELT satisfies partial backordering. The authors prove the existence of unique Nash equilibrium for the system under each policy. The results show that the ELT solution is independent of the transshipment price while the PLT solution converges to the newsvendor solution as the transshipment price increases. Numerical analysis is presented to illustrate the advantage of each policy. This study assists retailers in deciding which transshipment policy should be preferred.

• Record URL:
  https://doi.org/10.1016/j.tre.2018.07.010
• Record URL:
  http://www.sciencedirect.com/science/article/pii/S1366554517302107
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/13665545
• Supplemental Notes:
  • © 2018 Elsevier Ltd. All rights reserved. Abstract reprinted with permission of Elsevier.
• Authors:
  • Feng, Pingping
  • Wu, Feng
  • Fung, Richard Y K
  • Jia, Tao
• Publication Date: 2018-10

Language

• English

Media Info

• Media Type: Web
• Features: Appendices; Figures; References; Tables;
• Pagination: pp 207-224
• Serial:
  • Transportation Research Part E: Logistics and Transportation Review
  • Volume: 118
  • Issue Number: 0
  • Publisher: Elsevier
  • ISSN: 1366-5545
  • Serial URL: http://www.sciencedirect.com/science/journal/13665545

Subject/Index Terms

• TRT Terms: Inventory; Numerical analysis; Shipments; Supply chain management; Transportation policy
• Uncontrolled Terms: Transshipment
• Subject Areas: Freight Transportation; Planning and Forecasting; Policy;

Filing Info

• Accession Number: 01680762
• Record Type: Publication
• Files: TRIS
• Created Date: Sep 18 2018 9:34AM