How to order and transship in multi-location inventory systems: The simulation optimization approach

How to order and transship in multi-location inventory systems: The simulation optimization approach

0.00 Avg rating0 Votes
Article ID: iaor20126201
Volume: 140
Issue: 2
Start Page Number: 646
End Page Number: 654
Publication Date: Dec 2012
Journal: International Journal of Production Economics
Authors: ,
Keywords: simulation, optimization, combinatorial optimization, inventory: order policies
Abstract:

The efficient control of multi‐location inventory systems with lateral transshipments has become increasingly important. However, existing models are analytically solvable only under simplifying assumptions. There is a variety of heuristics to find approximate solutions, but interdependencies between ordering and transshipment decisions for continuous time are not addressed. Thus, we suggest using simulation optimization. In our paper, we describe a widely adaptable simulation model for mapping highly complex multi‐location inventory systems with lateral transshipments. By applying this model to a special case from the literature and to some examples, we show its validity and generality.

Reviews

Required fields are marked *. Your email address will not be published.