Dynamic Complexities in a Supply Chain System with Lateral Transshipments

Wei, Yongchang; Chen, Fangyu; Xiong, Feng

doi:10.1155/2018/3959141

Cited by 13 publications

(5 citation statements)

References 42 publications

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“…The transshipment problems have been studied for a variety of aspects and properties. The impact of lateral transshipment on the bullwhip effect was investigated in a two-tiered supply chain system [6]. Heuristic policies were suggested for a multilocation system with combined transshipment and production control [7].…”

Section: Review Of the State-of-the-art Researchmentioning

confidence: 99%

Integrated Inventory Transshipment and Missing-Data Treatment Using Improved Imputation-Level Adjustment for Efficient Cross-Filling

2022

Sustainability

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This research investigates an integrated problem of transshipment for cross-filling and imputation for missing demand data. Transshipment for cross-filling has proved effective in mitigating shortages with relatively low inventory, thus reducing resource consumption in inventory management. Although accurate demand data are critical for cross-filling decision making, some demand data are inevitably incomplete. These missing data should be treated for effective transshipment operations. Despite the importance, these missing data issues have not been adequately studied for transshipment problems. This paper addresses how transshipment can be conducted under missing demand conditions. A novel integrated problem is established to combine demand-data imputation processes and transshipment decisions. Imputation strategies and new algorithms suitable for transshipment are developed to handle missing demand data. Diverse demand and transshipment cases are analyzed for cost-effectiveness. The analysis uncovers that conventional straightforward imputation methods result in inferior transshipment decisions. The study also reveals that imputed values should be adjusted to appropriate levels for transshipment to be effective. The strong interplay between imputation processes and shortage prevention is also discovered for transshipment with missing demand. This study demonstrates how inventory transshipment can be carried out successfully with appropriate treatment of missing demand data in practice.

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Section: Review Of the State-of-the-art Researchmentioning

confidence: 99%

Integrated Inventory Transshipment and Missing-Data Treatment Using Improved Imputation-Level Adjustment for Efficient Cross-Filling

2022

Sustainability

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“…Bhatnagar and Lin [23] developed two heuristic policies for the multilocation production/inventory system problem with the joint transshipment and production control policies, in which items are manufactured and stocked at each location to meet the demand. Wei et al [24] explored the impacts of lateral transshipments on the stability, bullwhip effect, and other performance measurements in the context of a two-tiered supply chain system composed of one supplier and two retailers. Zhao and Sen [25] presented a comparison of sample-path-based simulation and stochastic decomposition for multilocation transshipment problems considering one supplier and N nonidentical retailers who face uncertain customer demands, as proposed by Herer et al [3].…”

Section: Related Literaturementioning

confidence: 99%

Transshipment Vehicle Routing with Pickup and Delivery for Cross-Filling

Rim

2021

Mathematical Problems in Engineering

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Distribution centers (DCs) typically receive orders from the customers (mostly retail stores) located in their vicinity and deliver the ordered goods the next day morning. To maintain high item fill rate, DCs have to hold a high level of inventory, which will increase inventory cost. As an alternative, cross-filling is that, after closing the daily order receipt, DCs exchange surplus items during the night to reduce the shortage. The economic justification of such cross-filling will depend on the tradeoff between extra transshipment and handling cost versus saved shortage cost. In this paper, as an extension of Rim and Jiang, 2019, vehicles are allowed to drop and pick up items at the intermediate DCs in the route. We present a genetic algorithm to determine the routes and amount to pick up/drop at each DC to minimize the total cost.

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“…Since turbulent and dynamic environments lead to inherent uncertainty in the supply chain structure, it is essential to design the supply chain network in such a way that the customer demand is met and the performance of the supply chain is assured (Hosseini et al 2019). The multiple-sourcing strategy through improving the service level, and lateral transshipments through the horizontal interaction between supply chain members, leads to supply chain resilience, and accordingly, decreasing the costs and increasing the customer service level (Wei et al 2018).…”

Section: Introductionmentioning

confidence: 99%

A branch and efficiency algorithm to design a sustainable two-echelon supply chain network considering traffic congestion and uncertainty

Babaei

Khedmati

Jokar

2022

Environ Sci Pollut Res

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This work aims to design a sustainable two-echelon supply chain not only based on the widely used cost perspective, but also based on the efficient use and preservation of limited resources. For this purpose, a branch and efficiency (B&E) algorithm is developed, which includes an optimization model and an evaluation model. The proposed tri-objective optimization model simultaneously minimizes the total cost of the supply chain, maximizes the sustainability score, and minimizes inequity among customers. The solutions obtained from the optimization model are then evaluated by extended data envelopment analysis (EDEA) models based on common criteria (i.e., cost and service) and traffic congestion criterion. To take into account real-world conditions, parameters related to labor and demand are assumed under uncertainty. Since the presented models consist of more than one objective function, fuzzy goal programming (FGP) method is utilized to tread the multiobjectiveness. The obtained results from tackling a case study problem demonstrate that considering sustainability issues can positively affect both the economic and social aspects of the problem. Furthermore, the developed B&E algorithm is able to reduce costs in each iteration; this is what supply chain managers are interested in. On the other hand, this algorithm can provide more services to applicants compared to one of the competing algorithms.

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Dynamic Complexities in a Supply Chain System with Lateral Transshipments

Cited by 13 publications

References 42 publications

Integrated Inventory Transshipment and Missing-Data Treatment Using Improved Imputation-Level Adjustment for Efficient Cross-Filling

Integrated Inventory Transshipment and Missing-Data Treatment Using Improved Imputation-Level Adjustment for Efficient Cross-Filling

Transshipment Vehicle Routing with Pickup and Delivery for Cross-Filling

A branch and efficiency algorithm to design a sustainable two-echelon supply chain network considering traffic congestion and uncertainty

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