Simulation-based lateral transshipment policy optimization for s, S inventory control problem in a single-echelon supply chain network

Ekren, Banu Yetkin; Arslan, Bartu

doi:10.11121/ijocta.01.2020.00789

Cited by 15 publications

(7 citation statements)

References 28 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…According to the results, any lateral inventory share policy produces better total network costs than non-lateral inventory share policy. This also echoes the findings of previous works of [21,27,36,37]. This is also true under different lost sale per product cost (LS C ) scenario.…”

Section: Discussionsupporting

confidence: 89%

“…Lee et al [20] propose a lateral transshipment policy called SLA, in which the service level is taken into account in order to decide the amount of lateral transshipment. Ekren and Arslan [21] apply inventory share policies by transshipping the products between stocking locations. They consider (s, S) inventory control policy with three depots.…”

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Omni-Chanel Network Design towards Circular Economy under Inventory Share Policies

et al. 2021

View full text Add to dashboard Cite

In this paper, we study inventory share policies in an omni-channel supply network, to contribute to the circular economy (CE) concept. Lateral inventory share implementation provides flexibility and profitability in the supply chain by allowing inventory share between the same echelon locations in a network. Total holding costs and transportation costs can be reduced by lateral inventory share applications, which also contribute to decreased material usage for production over time, as well as reduced CO2 emission released by transportation. Technological and Internet of Things (IoT) developments make it possible for companies to share their real-time information with each other for uninterrupted marketing experiences. With such a connected network, companies aim to increase their profitability and responsiveness to their customers. We explore a well-designed inventory share policy towards the CE concept under an (s, S) inventory control policy. We simulate several pre-defined share designs by Arena 16.0 commercial software and compare their performances in terms of cost, responsiveness, transportation frequency, inventory held, etc. The results show that, by the implementation of a well-designed lateral inventory share policy, an omni-channel network can benefit from decreased holding cost and transportation cost, contributing to the CE concept.

show abstract

Section: Discussionsupporting

confidence: 89%

Section: Literature Reviewmentioning

confidence: 99%

Omni-Chanel Network Design towards Circular Economy under Inventory Share Policies

et al. 2021

View full text Add to dashboard Cite

show abstract

“…Ekren and Örnek [31,32] examine (s, S) inventory control problems by using simulation optimization procedures. Ekren and Arslan [33] compare different lateral transshipment policies by considering an (s, S) inventory policy to minimize cost. They propose that models with lateral transshipment policy produce better results than models without lateral transshipment policy.…”

Section: Literature Reviewmentioning

confidence: 99%

Inventory Share Policy Designs for a Sustainable Omni-Chanel E-Commerce Network

2020

View full text Add to dashboard Cite

This paper studies inventory share policies for sustainable omni-channel e-commerce supply network design by seeking for a good integration policy of online and offline retailers so that the overall supply network reduce its cost, environmental negative impacts by the decreased number of shipments from the main depot, and increase its responsiveness. By the recent advancement in information technologies and internet use, e-commerce practice gained popularity also to keep up with the competitive environment. The increased competitive supply chain environment has revealed the business-to-business (B2B) concepts enabling business applications between companies. Strategic alliance is a partnership concept realized between two or more organizations ensuring that stages are managed with consideration of the welfare of the others in the whole network. By considering that there are inventory share policies between stages, we accept the existence of strategic alliance implementation in the network, aiming to increase total network flexibility and profitability as well as sustainability in the network. In the study, we research inventory share policies towards strategic alliance concept to have a network design with a decreased negative effect of demand uncertainty and increased profitability in the network. By inventory share policies, businesses share their current inventories with the others so that transportation cost and CO2 emission caused by traffic intensity is decreased in the network. We propose six inventory share policy combinations and optimize the (s, S) inventory levels under those policies by minimizing total network cost. We utilize the simulation modeling approach for the modeling purpose. We compare the policy results based on the total network cost, the total number of shipments completed from the main warehouse, and total lost sale cost, etc., at the optimal levels and suggest the best policy design.

show abstract

“…Feng et al (2018) studied different inventory transshipment decisions in a two‐retailer supply chain. Ekren and Arslan (2020) constructed a single level supply chain network system with three locations to compare different transshipment strategies.…”

Section: Literature Reviewmentioning

confidence: 99%

Inventory cooperation strategies between one supplier and two recycling centers

Gao,

Qu,

Jiang

2023

Manage Decis Econ

View full text Add to dashboard Cite

Due to environmental and economic incentives, reverse supply chains have developed. In a reverse supply chain, due to the uncertainty of recycling, the probability of out‐of‐stock is high for recycled parts. In inventory management, transshipment and substitution are often used to avoid various consequences caused by stock shortages. This paper deals with a single‐echelon inventory system with two recycling centers and one supplier. Given demand characteristics, replenishment methods, and sharing rules, four inventory models: general strategy, lateral transshipment between the two recycling centers, substitution between recycling centers, and the supplier and the multi‐strategy are constructed. In the numerical example, Mathematica 11.3 is used to solve the models. Results show that lateral transshipment does not necessarily reduce the cost of recycling centers, while the substitution strategy and the multistrategy are better than the other two, among which the multistrategy is usually better than the substitution, unless the recycling center faces low replenishment rates with high demand rates. These conclusions can provide some management implications for recycling companies.

show abstract

Simulation-based lateral transshipment policy optimization for s, S inventory control problem in a single-echelon supply chain network

Cited by 15 publications

References 28 publications

Omni-Chanel Network Design towards Circular Economy under Inventory Share Policies

Omni-Chanel Network Design towards Circular Economy under Inventory Share Policies

Inventory Share Policy Designs for a Sustainable Omni-Chanel E-Commerce Network

Inventory cooperation strategies between one supplier and two recycling centers

Contact Info

Product

Resources

About