IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v34y1998i2p149-160.html
   My bibliography  Save this article

The influence of individual cost factors on the use of emergency transshipments

Author

Listed:
  • Needham, Paul M.
  • Evers, Philip T.

Abstract

Emergency transshipments represent one way in which logistics managers can reduce inventories while simultaneously maintaining customer service levels. This paper examines the cost implications of these actions and offers a straightforward approach to analyzing their suitability. Simulation results indicate that the cost of a stockout is the primary determinant in the transshipment decision, with higher stockout cost levels generally increasing the likelihood that transshipment usage will lead to lower overall cost. A metamodel is proposed as a practical means of providing insight into when emergency transshipments should be employed.

Suggested Citation

  • Needham, Paul M. & Evers, Philip T., 1998. "The influence of individual cost factors on the use of emergency transshipments," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 34(2), pages 149-160, June.
    • Handle: RePEc:eee:transe:v:34:y:1998:i:2:p:149-160
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S136655459800009X
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

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

    Citations

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


    Cited by:

    1. de Kok, Ton & Grob, Christopher & Laumanns, Marco & Minner, Stefan & Rambau, Jörg & Schade, Konrad, 2018. "A typology and literature review on stochastic multi-echelon inventory models," European Journal of Operational Research, Elsevier, vol. 269(3), pages 955-983.
    2. Tiacci, Lorenzo & Saetta, Stefano, 2011. "Reducing the mean supply delay of spare parts using lateral transshipments policies," International Journal of Production Economics, Elsevier, vol. 133(1), pages 182-191, September.
    3. Dilupa Nakandala & Henry Lau & Paul K.C. Shum, 2017. "A lateral transshipment model for perishable inventory management," International Journal of Production Research, Taylor & Francis Journals, vol. 55(18), pages 5341-5354, September.
    4. 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.
    5. Minner, Stefan & Silver, Edward A., 2005. "Evaluation of two simple extreme transshipment strategies," International Journal of Production Economics, Elsevier, vol. 93(1), pages 1-11, January.
    6. Zou, Li & Dresner, Martin & Windle, Robert, 2010. "A two-location inventory model with transshipments in a competitive environment," International Journal of Production Economics, Elsevier, vol. 125(2), pages 235-250, June.
    7. Wong, H. & van Houtum, G.J. & Cattrysse, D. & Oudheusden, D. Van, 2006. "Multi-item spare parts systems with lateral transshipments and waiting time constraints," European Journal of Operational Research, Elsevier, vol. 171(3), pages 1071-1093, June.
    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.
    9. Tee, Yeu-San & Rossetti, Manuel D., 2002. "A robustness study of a multi-echelon inventory model via simulation," International Journal of Production Economics, Elsevier, vol. 80(3), pages 265-277, December.
    10. Herer, Yale T. & Tzur, Michal & Yucesan, Enver, 2002. "Transshipments: An emerging inventory recourse to achieve supply chain leagility," International Journal of Production Economics, Elsevier, vol. 80(3), pages 201-212, December.
    11. Minner, Stefan & Silver, Edward A. & Robb, David J., 2003. "An improved heuristic for deciding on emergency transshipments," European Journal of Operational Research, Elsevier, vol. 148(2), pages 384-400, July.
    12. Evers, Philip T., 2001. "Heuristics for assessing emergency transshipments," European Journal of Operational Research, Elsevier, vol. 129(2), pages 311-316, March.
    13. Torabi, S.A. & Hassini, E. & Jeihoonian, M., 2015. "Fulfillment source allocation, inventory transshipment, and customer order transfer in e-tailing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 79(C), pages 128-144.
    14. 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.

    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:transe:v:34:y:1998:i:2:p:149-160. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    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.