IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Modeling Emergency Supply Flexibility in a Two-Echelon Inventory System

  • Patrik Alfredsson

    (Systecon AB, Box 5205, SE-102 45 Stockholm, Sweden)

  • Jos Verrijdt

    (Eindhoven University of Technology, Faculty of Technology Management, Paviljoen F16, P.O. Box 513, 5600 MB, The Netherlands)

Registered author(s):

    We consider a two-echelon inventory system for service parts. To obtain high service levels at a low cost we allow not only for normal supply of parts but also for emergency supply options in terms of lateral transshipments and direct deliveries. After presenting the strategy we use for satisfying customer demand, we construct an analytical model that we use to calculate relevant performance measures. Simulation shows that our model produces accurate estimates, and that the performance of the inventory system is insensitive to the lead-time distribution. After introducing a cost structure we show that the strategy we propose can result in considerable savings when compared to using only normal supply. Comparison of the results of our model with the results of other models indicates that the combined use of lateral transshipments and direct deliveries can lead to significant cost savings.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://dx.doi.org/10.1287/mnsc.45.10.1416
    Download Restriction: no

    Article provided by INFORMS in its journal Management Science.

    Volume (Year): 45 (1999)
    Issue (Month): 10 (October)
    Pages: 1416-1431

    as
    in new window

    Handle: RePEc:inm:ormnsc:v:45:y:1999:i:10:p:1416-1431
    Contact details of provider: Postal: 7240 Parkway Drive, Suite 300, Hanover, MD 21076 USA
    Phone: +1-443-757-3500
    Fax: 443-757-3515
    Web page: http://www.informs.org/
    Email:


    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:45:y:1999:i:10:p:1416-1431. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.