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Lateral stock transshipments in a two‐location inventory system with fixed and joint replenishment costs
Author(s) -
Herer Yale T.,
Rashit Ayelet
Publication year - 1999
Publication title -
naval research logistics (nrl)
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.665
H-Index - 68
eISSN - 1520-6750
pISSN - 0894-069X
DOI - 10.1002/(sici)1520-6750(199908)46:5<525::aid-nav5>3.0.co;2-e
Subject(s) - transshipment (information security) , operations research , fixed cost , stockout , time horizon , computer science , stock (firearms) , holding cost , operations management , total cost , joint venture , mathematical optimization , economics , microeconomics , mathematics , commerce , engineering , mechanical engineering
We address the problem of inventory management in a two‐location inventory system, in which the transshipments are carried out as means of emergency or alternative supply after demand has been realized. This model differs from previous ones as regards its replenishment costs structure, in which nonnegligible fixed replenishment costs and a joint replenishment cost are considered. The single period planning horizon is analyzed, with the form and several properties of the optimal replenishment and transshipment policies developed, discussed and illustrated. © 1999 John Wiley & Sons, Inc. Naval Research Logistics 46: 525–547, 1999