Modelling emergency lateral transshipments in inventory systems

Modelling emergency lateral transshipments in inventory systems

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Article ID: iaor19911453
Country: United States
Volume: 36
Issue: 11
Start Page Number: 1329
End Page Number: 1338
Publication Date: Nov 1990
Journal: Management Science
Authors:
Keywords: location
Abstract:

In inventory systems with several bases that support different geographical regions, it is quite common to allow emergency lateral transshipments between the bases. This may be advantageous if neighbouring bases are at shorter distances than the central depot or the external supplier. This paper provides a new technique for modelling such lateral transshipments in continuous review inventory systems with one-for-one replenishments and Poisson demand. The paper applies this technique to a two-echelon system with repairable items.

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