Freight simulation: a monte carlo simulation approach to the capacitated multi-location transshipment problem
Pages 1729 - 1736
Abstract
We consider a supply chain, which consists of <i>N</i> retailers and one supplier. The retailers may be coordinated through replenishment strategies and lateral transshipments, that is, movement of a product among the locations at the same echelon level. Transshipment quantities may be limited, however, due to the physical constraints of the transportation media or due to the reluctance of retailers to completely pool their stock with other retailers. We introduce a stochastic approximation algorithm to compute the order-up-to quantities using a sample-path-based optimization procedure. Given an order-up-to <i>S</i> policy, we determine an optimal transshipment policy, using an LP/Network flow framework. Such a numerical approach allows us to study systems with arbitrary complexity.
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- Freight simulation: a monte carlo simulation approach to the capacitated multi-location transshipment problem
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- IIE: Institute of Industrial Engineers
- INFORMS/CS: Institute for Operations Research and the Management Sciences/College on Simulation
- ASA: American Statistical Association
- ACM: Association for Computing Machinery
- SIGSIM: ACM Special Interest Group on Simulation and Modeling
- IEEE/CS: Institute of Electrical and Electronics Engineers/Computer Society
- NIST: National Institute of Standards and Technology
- (SCS): The Society for Modeling and Simulation International
- IEEE/SMCS: Institute of Electrical and Electronics Engineers/Systems, Man, and Cybernetics Society
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Winter Simulation Conference
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Published: 07 December 2003
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