IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v228y2013i2p447-456.html
   My bibliography  Save this article

Transshipment and rebalancing policies for library books

Author

Listed:
  • Van der Heide, G.
  • Roodbergen, K.J.

Abstract

Library customers can soon order books online and specify a location to collect them from. Libraries exchange books between locations to meet these requests. Two types of exchanges take place: transshipments from library to library to fulfill the requests and rebalancing to redistribute books between libraries. This research determines optimal decisions for transshipments and rebalancing, so that logistic costs in the library system are minimized. In current practice, libraries typically send the book back to the original library after return. We consider a more general policy, in which we rebalance books in anticipation of demand. Moreover, we determine the optimal location from which to transship a book when it is unavailable at the location of demand. By means of stochastic dynamic programming, we derive the optimal policy for small instances. For larger instances we present two heuristics: the cluster and the expected shortage reduction (ESR) heuristic. The ESR heuristic proves to be near-optimal and significantly outperforms current practice.

Suggested Citation

  • Van der Heide, G. & Roodbergen, K.J., 2013. "Transshipment and rebalancing policies for library books," European Journal of Operational Research, Elsevier, vol. 228(2), pages 447-456.
    • Handle: RePEc:eee:ejores:v:228:y:2013:i:2:p:447-456
    DOI: 10.1016/j.ejor.2013.02.008
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221713001264
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2013.02.008?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. W-K Ching & W-O Yuen & A W Loh, 2003. "An inventory model with returns and lateral transshipments," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 54(6), pages 636-641, June.
    2. Agrawal, Vipul & Chao, Xiuli & Seshadri, Sridhar, 2004. "Dynamic balancing of inventory in supply chains," European Journal of Operational Research, Elsevier, vol. 159(2), pages 296-317, December.
    3. Paterson, Colin & Kiesmüller, Gudrun & Teunter, Ruud & Glazebrook, Kevin, 2011. "Inventory models with lateral transshipments: A review," European Journal of Operational Research, Elsevier, vol. 210(2), pages 125-136, April.
    4. Daniel Adelman, 2007. "Price-Directed Control of a Closed Logistics Queueing Network," Operations Research, INFORMS, vol. 55(6), pages 1022-1038, December.
    5. George, David K. & Xia, Cathy H., 2011. "Fleet-sizing and service availability for a vehicle rental system via closed queueing networks," European Journal of Operational Research, Elsevier, vol. 211(1), pages 198-207, May.
    6. Fleischmann, Moritz & Bloemhof-Ruwaard, Jacqueline M. & Dekker, Rommert & van der Laan, Erwin & van Nunen, Jo A. E. E. & Van Wassenhove, Luk N., 1997. "Quantitative models for reverse logistics: A review," European Journal of Operational Research, Elsevier, vol. 103(1), pages 1-17, November.
    7. Olsson, Fredrik, 2009. "Optimal policies for inventory systems with lateral transshipments," International Journal of Production Economics, Elsevier, vol. 118(1), pages 175-184, March.
    8. Tiacci, Lorenzo & Saetta, Stefano, 2011. "A heuristic for balancing the inventory level of different locations through lateral shipments," International Journal of Production Economics, Elsevier, vol. 131(1), pages 87-95, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. van Wijk, A.C.C. & Adan, I.J.B.F. & van Houtum, G.J., 2019. "Optimal lateral transshipment policies for a two location inventory problem with multiple demand classes," European Journal of Operational Research, Elsevier, vol. 272(2), pages 481-495.
    2. Meissner, Joern & Senicheva, Olga V., 2018. "Approximate dynamic programming for lateral transshipment problems in multi-location inventory systems," European Journal of Operational Research, Elsevier, vol. 265(1), pages 49-64.
    3. Liao, Yi & Shen, Wenjing & Hu, Xinxin & Yang, Shilei, 2014. "Optimal responses to stockouts: Lateral transshipment versus emergency order policies," Omega, Elsevier, vol. 49(C), pages 79-92.
    4. Van der Heide, G. & Roodbergen, K.J. & Van Foreest, N.D., 2021. "Cross docking for libraries with a depot," European Journal of Operational Research, Elsevier, vol. 290(2), pages 749-765.
    5. Van der Heide, G. & Van Foreest, N.D. & Roodbergen, K.J., 2018. "Optimizing stock levels for rental systems with a support warehouse and partial backordering," European Journal of Operational Research, Elsevier, vol. 265(1), pages 107-118.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tai, Allen H. & Ching, Wai-Ki, 2014. "Optimal inventory policy for a Markovian two-echelon system with returns and lateral transshipment," International Journal of Production Economics, Elsevier, vol. 151(C), pages 48-55.
    2. Dijkstra, Arjan S. & Van der Heide, Gerlach & Roodbergen, Kees Jan, 2019. "Transshipments of cross-channel returned products," International Journal of Production Economics, Elsevier, vol. 209(C), pages 70-77.
    3. García-Benito, Juan Carlos & Martín-Peña, María-Luz, 2021. "A redistribution model with minimum backorders of spare parts: A proposal for the defence sector," European Journal of Operational Research, Elsevier, vol. 291(1), pages 178-193.
    4. Zümbül Atan & Lawrence V. Snyder & George R. Wilson, 2018. "Transshipment policies for systems with multiple retailers and two demand classes," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 40(1), pages 159-186, January.
    5. Meissner, Joern & Senicheva, Olga V., 2018. "Approximate dynamic programming for lateral transshipment problems in multi-location inventory systems," European Journal of Operational Research, Elsevier, vol. 265(1), pages 49-64.
    6. Paterson, Colin & Kiesmüller, Gudrun & Teunter, Ruud & Glazebrook, Kevin, 2011. "Inventory models with lateral transshipments: A review," European Journal of Operational Research, Elsevier, vol. 210(2), pages 125-136, April.
    7. Van der Heide, G. & Roodbergen, K.J. & Van Foreest, N.D., 2021. "Cross docking for libraries with a depot," European Journal of Operational Research, Elsevier, vol. 290(2), pages 749-765.
    8. Dehghani, Maryam & Abbasi, Babak & Oliveira, Fabricio, 2021. "Proactive transshipment in the blood supply chain: A stochastic programming approach," Omega, Elsevier, vol. 98(C).
    9. Naderi, Siamak & Kilic, Kemal & Dasci, Abdullah, 2020. "A deterministic model for the transshipment problem of a fast fashion retailer under capacity constraints," International Journal of Production Economics, Elsevier, vol. 227(C).
    10. Santiago R. Balseiro & David B. Brown & Chen Chen, 2021. "Dynamic Pricing of Relocating Resources in Large Networks," Management Science, INFORMS, vol. 67(7), pages 4075-4094, July.
    11. LI, Li, 2019. "Cooperative purchasing and preactive inventory sharing – Channel balancing and performance improvement," European Journal of Operational Research, Elsevier, vol. 278(3), pages 738-751.
    12. Harmen W. Bouma & Ruud H. Teunter, 2016. "The routed inventory pooling problem with multiple lateral transshipments," International Journal of Production Research, Taylor & Francis Journals, vol. 54(12), pages 3523-3533, June.
    13. Demeter, Krisztina & Szász, Levente & Kő, Andrea, 2019. "A text mining based overview of inventory research in the ISIR special issues 1994–2016," International Journal of Production Economics, Elsevier, vol. 209(C), pages 134-146.
    14. Quan-Lin Li & Rui-Na Fan, 2022. "A mean-field matrix-analytic method for bike sharing systems under Markovian environment," Annals of Operations Research, Springer, vol. 309(2), pages 517-551, February.
    15. Moghaddam, Mohsen & Nof, Shimon Y., 2016. "Real-time optimization and control mechanisms for collaborative demand and capacity sharing," International Journal of Production Economics, Elsevier, vol. 171(P4), pages 495-506.
    16. Hossein Abouee-Mehrizi & Oded Berman & Shrutivandana Sharma, 2015. "Optimal Joint Replenishment and Transshipment Policies in a Multi-Period Inventory System with Lost Sales," Operations Research, INFORMS, vol. 63(2), pages 342-350, April.
    17. Cem Deniz Caglar Bozkir & O. Erhun Kundakcioglu & Andrea C. Henry, 2022. "Hospital service levels during drug shortages: Stocking and transshipment policies for pharmaceutical inventory," Journal of Global Optimization, Springer, vol. 83(3), pages 565-584, July.
    18. Seidscher, Arkadi & Minner, Stefan, 2013. "A Semi-Markov decision problem for proactive and reactive transshipments between multiple warehouses," European Journal of Operational Research, Elsevier, vol. 230(1), pages 42-52.
    19. Moghaddam, Mohsen & Nof, Shimon Y., 2014. "Combined demand and capacity sharing with best matching decisions in enterprise collaboration," International Journal of Production Economics, Elsevier, vol. 148(C), pages 93-109.
    20. Dobromir Herzog, 2021. "Human factor aspects in information security management in the traditional IT and cloud computing models," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 31(2), pages 93-108.

    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:eee:ejores:v:228:y:2013:i:2:p:447-456. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    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.