Article ID: | iaor20001961 |
Country: | United States |
Volume: | 46 |
Issue: | 5 |
Start Page Number: | 525 |
End Page Number: | 547 |
Publication Date: | Aug 1999 |
Journal: | Naval Research Logistics |
Authors: | Herer Yale T., Rashit Ayelet |
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.