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Application of Transshipment in the Supply Chain Management in Tunisia

Author

Listed:
  • Elleuch Fadoi
  • Semi Boudabbous

Abstract

Purpose: In, our paper, we have studied the problem of lateral transshipment as being a mode of cooperation in between the different retailers which are located near, to improve the supply chain management. Design/Methodology/Approach: First, a simulation-optimization approach based on a metamodel is applied to find the different measures of the initial level of replenishment. Secondly, a series of simulation experiments are performed to find the best transshipment policy, in terms, of maximizing the expected Average Global Profit and minimizing the Average Global Desservice Rate. Findings: The policies tested are no-pooling, complete-pooling, and various partial pooling policies depending on the selection of physical inventory thresholds. The best transshipment policy is partial pooling with such a threshold equal to “Security Stock = 30% of PSiT”. Practical implementation: Partial pooling is a very interesting transshipment policy and should be further addressed in future research.

Suggested Citation

  • Elleuch Fadoi & Semi Boudabbous, 2021. "Application of Transshipment in the Supply Chain Management in Tunisia," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 11(4), pages 81-103.
    • Handle: RePEc:ers:ijfirm:v:11:y:2021:i:4:p:81-103
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    References listed on IDEAS

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    More about this item

    Keywords

    Transshipment policies; complete-pooling; partial-pooling; Simulation; Vendor-managed inventory; Supply Chain Management; partial-pooling threshold.;
    All these keywords.

    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R49 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Other

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