Multi-location transshipment problem with capacitated production and lost sales
Pages 1470 - 1476
Abstract
We consider coordination among stocking locations through replenishment strategies that explicitly take into account lateral transshipments, i.e., transfer of a product among locations at the same echelon level. The basic contribution of our research is the incorporation of supply capacity into the traditional emergency transshipment model. We formulate the capacitated production case as a network flow problem embedded in a stochastic optimization problem. We develop a solution procedure based on infinitesimal perturbation analysis (IPA) to solve the stochastic optimization problem numerically. We analyze the impact on system behavior and on stocking locations' performance when the supplier may fail to fulfill all the replenishment orders and the unmet demand is lost. We find that depending on the production capacity, system behavior can vary drastically. Moreover, in a production-inventory system, we find evidence that either capacity flexibility (i.e., extra production) or transshipment flexibility is required to maintain a certain level of service.
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- Multi-location transshipment problem with capacitated production and lost sales
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Published In
December 2006
2429 pages
ISBN:1424405017
- Editors:
- L. Felipe Perrone,
- Barry G. Lawson,
- Jason Liu,
- Frederick P. Wieland,
- General Chair:
- David Nicol,
- Program Chair:
- Richard Fujimoto
Sponsors
- IIE: Institute of Industrial Engineers
- ASA: American Statistical Association
- IEICE ESS: Institute of Electronics, Information and Communication Engineers, Engineering Sciences Society
- IEEE-CS\DATC: The IEEE Computer Society
- SIGSIM: ACM Special Interest Group on Simulation and Modeling
- NIST: National Institute of Standards and Technology
- (SCS): The Society for Modeling and Simulation International
- INFORMS-CS: Institute for Operations Research and the Management Sciences-College on Simulation
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Winter Simulation Conference
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Published: 03 December 2006
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- IEICE ESS
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WSC '06 Paper Acceptance Rate 177 of 252 submissions, 70%;
Overall Acceptance Rate 3,413 of 5,075 submissions, 67%
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