Managing transshipments in a multi-retailer system with approximate policies

Çömez-Dolgan, Nagihan; Fescioglu-Ünver, Nilgün

doi:10.1057/jors.2014.59

Cited by 17 publications

(7 citation statements)

References 29 publications

(36 reference statements)

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“…The random selection rule is commonly assumed in the literature. In fact, Comez-Dolgan and Fescioglu-Unver (2015) state that this rule performs quite well. Archibald et al (2009) suggest a different selection criterion based on the fair charge for the transshipped inventory.…”

Section: Transshipmentsmentioning

confidence: 98%

Transshipment policies for systems with multiple retailers and two demand classes

2017

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Many retailers discriminate among their customers based on their value to the firm. Instead of losing a customer due to this discrimination or lack of inventory, a retailer might prefer to place a transshipment request with other retailers to satisfy the customer's demand. The system as a whole can benefit from this type of transshipments. In this paper, we study a problem of a centrally controlled system with multiple retailers. Each retailer serves two types of customers: high priority and low priority. Each retailer employs a rationing policy with a rationing level k in the context of a continuous-review (r, Q) inventory replenishment model. The overall policy is referred to as an (r, k, Q) policy. Retailers can transship items from either other retailers or a more expensive central depot. We propose an enumeration-based approximation to find the cost-minimizing policy parameters for the individual retailers and an approximation procedure to solve the combined rationing and transshipment problem. The latter relies on adjusting the demand arrival rates and the unit transshipment costs for both types of customers at all retailers. An extensive numerical study highlights the impact of transshipments on the retailers' rationing policies. Without transshipment opportunities among each other, retailers set their policy parameters so that the resulting service levels are high for both types of customers. Allowing transshipments results in more aggressive rationing policies, and retailers with aggressive rationing policies benefit from the transshipments the most.

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Section: Transshipmentsmentioning

confidence: 98%

Transshipment policies for systems with multiple retailers and two demand classes

2017

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“…Mishra et al [19] make an effort that integrates both inventory and transshipment components in the study of multi-location inventory systems. Çömez−dolgan et al [7] introduce simple, close-to-optimal heuristic transshipment policies for multiple retailers. It is shown that heuristic policies may perform even better than self-optimal policy.…”

Section: Transshipment Policymentioning

confidence: 99%

A new transshipment policy in cluster supply chains based on system dynamics

Yan

Liu

2018

RAIRO-Oper. Res.

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In this paper, the cross-chain inventory emergency supplementary of two single supply chains is investigated to simulate the transshipment of the supply chain network system in the industrial cluster supply chains. We assume that each single supply chain is composed by a manufacturer, a wholesaler and a retailer. Besides, a new transshipment policy based on system dynamics (SD) is proposed in this paper, called the model of the cross-chain inventory transshipment between two enterprises from both the same tier and different tiers. The new proposed model is different from the model of the cross-chain inventory transshipment between two enterprises at the same tier and the model of the cross-chain inventory transshipment between two enterprises at different tiers, which have been researched by previous scholars. Some comparisons are made among the three models. It is proved that the new proposed model can improve the customer satisfaction level (CSL) and lower the total inventory level than the two other models existing currently.

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“…Glazebrook et al [9] proposed a hybrid transshipment strategy which exploited economies of scale by moving excess inventory between traditional retail channels to prevent future stock-out in addition to meeting immediate stock-out. Çömez-Dolgan and Fescioglu-Unver [10] studied the question of whether or not a retailer should always satisfy the transshipment request from other retailers, and suggested that it was centrally optimal to satisfy all the transshipment requests when only few retailers stayed in the system. Çömez et al [11] built a flexible transshipment Yang, Zhang, Zhang, Liu: Cooperative Inventory Strategy in a Dual-Channel Supply Chain … 367 policy that allowed the retailer to reject a transshipment request on one day but accepted another transshipment request a few days later, instead of extreme transshipment strategies such as complete inventory sharing or no inventory sharing.…”

Section: Literature Reviewmentioning

confidence: 99%

Cooperative Inventory Strategy in a Dual-Channel Supply Chain with Transshipment Consideration

Yang¹,

Zhang²,

Zhang³

2016

Int. j. simul. model.

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Aimed at the possibility of stock-out of the traditional retail channel under stochastic demand in a dual-channel supply chain, we propose a cooperative inventory strategy, in which the excess demand of the traditional retail channel is complemented by the excess inventory of the manufacturer's direct channel through transshipment. We establish a newsboy model to analyse each supply chain member's order quantity decision making process, and prove the unique existence of pure-strategy Nash equilibrium under the uncooperative inventory strategy and the cooperative inventory strategy. We go on to discuss the impacts of the wholesale price, the channel substitution rate and the transshipment cost on optimal order quantities under each inventory strategy. Numerical simulation shows that when values of the wholesale price and the transshipment price satisfy certain conditions, the cooperative inventory strategy can not only lead to an increased supply chain profit but also achieve Pareto improvements of both the manufacturer and the retailer.

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Managing transshipments in a multi-retailer system with approximate policies

Cited by 17 publications

References 29 publications

Transshipment policies for systems with multiple retailers and two demand classes

Transshipment policies for systems with multiple retailers and two demand classes

A new transshipment policy in cluster supply chains based on system dynamics

Cooperative Inventory Strategy in a Dual-Channel Supply Chain with Transshipment Consideration

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