✦ LIBER ✦

Lateral stock transshipments in a two-location inventory system with fixed and joint replenishment costs

✍ Scribed by Yale T. Herer; Ayelet Rashit

Publisher: John Wiley and Sons
Year: 1999
Tongue: English
Weight: 183 KB
Volume: 46
Category: Article
ISSN: 0894-069X
DOI: 10.1002/(sici)1520-6750(199908)46:5<525::aid-nav5>3.0.co;2-e

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✦ Synopsis

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.