IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v43y1997i2p173-183.html
   My bibliography  Save this article

An Optimal Policy for a Two Depot Inventory Problem with Stock Transfer

Author

Listed:
  • T. W. Archibald

    (Department of Business Studies, University of Edinburgh, 50 George Square, Edinburgh, EH8 9JY, United Kingdom)

  • S. A. E. Sassen

    (Department of Business Studies, University of Edinburgh, 50 George Square, Edinburgh, EH8 9JY, United Kingdom)

  • L. C. Thomas

    (Department of Business Studies, University of Edinburgh, 50 George Square, Edinburgh, EH8 9JY, United Kingdom)

Abstract

Multiple depot inventory systems with stock transfer are used by many companies especially when demand is high relative to storage capacity. The key issues in such systems are how many of each item to hold at each depot and what to do if there is a demand for an item at a depot that has none of that item in stock. This study was motivated by the inventory problem faced by a UK car part retailer that groups its depots into pairs. The company's policy for dealing with a demand at a depot that cannot be satisfied from local stock is to either transfer the item from the other depot in the group or to place an emergency order. The object of this paper is to characterise an optimal policy for this problem and to propose a method of calculating the parameters of such a policy.

Suggested Citation

  • T. W. Archibald & S. A. E. Sassen & L. C. Thomas, 1997. "An Optimal Policy for a Two Depot Inventory Problem with Stock Transfer," Management Science, INFORMS, vol. 43(2), pages 173-183, February.
    • Handle: RePEc:inm:ormnsc:v:43:y:1997:i:2:p:173-183
    DOI: 10.1287/mnsc.43.2.173
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.43.2.173
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.43.2.173?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:43:y:1997:i:2:p:173-183. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.