Floating stocks in FMCG supply chains
AbstractIn this paper we present a new distribution concept called â€˜floating stocksâ€™, which uses intermodal transport to deploy inventories in a supply chain in advance of retailer demand. Supplying part of the demand directly by road compensates the longer transit time of this transport. First an analytical comparison is made which shows that this concept has advantages in inventories over pure road and intermodal transport. Next a simulation study of a real case is made which quantifies the cost-differences in detail.
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Bibliographic InfoPaper provided by Erasmus University Rotterdam, Econometric Institute in its series Econometric Institute Report with number EI 2004-17.
Date of creation: 19 May 2004
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supply chain; floating stock; intermodal transport; inventories; virtualwarehousing;
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