IDEAS home Printed from https://ideas.repec.org/a/ids/eujine/v7y2013i2p248-274.html
   My bibliography  Save this article

Modelling a two-retailer inventory system with preventive lateral transshipment using expected path approach

Author

Listed:
  • Ramidayu Yousuk
  • Huynh Trung Luong

Abstract

The paper presents the formulation of a mathematical model using the expected path approach in order to minimise the expected long-run total system cost per cycle of a two-retailer inventory system with preventive lateral transshipment. Each retailer employs base stock periodic review policy. The model assumes Poisson distributed demand and instantaneous transshipment. Unsatisfied demands are fully backlogged. Transshipment quantity is controlled by the hold-back inventory level. The benefits of inventory redistribution are illustrated by percentage reduction of system cost. The results show that cost parameters play a substantial role in transshipment decision. The benefits of lateral transshipment increase with either four conditions; unit transshipment cost is lower, unit backorder cost per unit time is higher, the transshipment point is scheduled near the end of the cycle, and regular replenishment lead time is longer. Furthermore, the decrease in system cost mainly comes from the reduction of the expected holding inventory cost. [Received 6 March 2010; Revised 28 February 2011, 4 August 2011, 15 September 2011, 28 September 2011; Accepted 28 September 2011].

Suggested Citation

  • Ramidayu Yousuk & Huynh Trung Luong, 2013. "Modelling a two-retailer inventory system with preventive lateral transshipment using expected path approach," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 7(2), pages 248-274.
    • Handle: RePEc:ids:eujine:v:7:y:2013:i:2:p:248-274
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=52571
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

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

    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:ids:eujine:v:7:y:2013:i:2:p:248-274. 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: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=210 .

    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.