Multi-Echelon Inventory Model with Emergency Lateral Transshipments  

Multi-Echelon Inventory Model with Emergency Lateral Transshipments

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作  者:陈剑 黄朔 

机构地区:[1]School of Economics and Management, Tsinghua University,Beijing 100084, China

出  处:《Tsinghua Science and Technology》2004年第4期482-488,共7页清华大学学报(自然科学版(英文版)

基  金:the National Natural Science Foundation of China (Nos. 79825102 and 70321001)

摘  要:In multi-echelon inventory systems, since neighboring retailers are located at shorter distances than the supplier, a retailer may seek stock from them when it is out of stock, that is, emergency lateral transshipments between retailers are commonly practiced to provide improved order fill rate. In this paper, we develop a continuous review multi-echelon model for consumable products when emergency lateral transshipments between retailers are allowed. Approximations are derived for the expected level of cost and order fill rate of retailers. Simulations conducted to test the validity of the approximate analytical model indi-cate that it performs very well in the cases where fairly high service levels are required. Numerical examples are also presented to illustrate the effects of emergency lateral transshipments on the performance criteria of inventory systems. The results indicate that emergency lateral transshipments will lead to a significant in-crease in the retailer order fail rate and this initiative is most suitable for items with a high penalty cost, or where lost sales are likely.In multi-echelon inventory systems, since neighboring retailers are located at shorter distances than the supplier, a retailer may seek stock from them when it is out of stock, that is, emergency lateral transshipments between retailers are commonly practiced to provide improved order fill rate. In this paper, we develop a continuous review multi-echelon model for consumable products when emergency lateral transshipments between retailers are allowed. Approximations are derived for the expected level of cost and order fill rate of retailers. Simulations conducted to test the validity of the approximate analytical model indi-cate that it performs very well in the cases where fairly high service levels are required. Numerical examples are also presented to illustrate the effects of emergency lateral transshipments on the performance criteria of inventory systems. The results indicate that emergency lateral transshipments will lead to a significant in-crease in the retailer order fail rate and this initiative is most suitable for items with a high penalty cost, or where lost sales are likely.

关 键 词:supply chain management emergency lateral transshipments BACKORDER 

分 类 号:F273[经济管理—企业管理]

 

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