Skip to main content

An Inventory Model with Lateral Transshipments

  • Conference paper
Modern Production Concepts
  • 151 Accesses

Abstract

In practice it is quite common to have several parallel regional warehouses when distributing products over a large geographical area. Each warehouse is then providing service to a certain local market. The regional warehouses normally replenish their stocks from a common supplier. In the event of a stockout at a warehouse it may be advantageous, however, to replenish from a nearby parallel warehouse instead of from the common supplier. Such lateral transshipments may improve the service-performance of the total system considerably. Therefore, many companies use lateral transshipments systematically. It is, in general, quite difficult, though, to model lateral transshipments in inventory systems, and most inventory models assume that such transshipments are not allowed.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Axsäter, S, S., “Modelling Emergency Lateral Transshipments in Inventory Systems”, Management Sci. (to appear), 1990.

    Google Scholar 

  • Bowman, J.P., “A Multi-Echelon Inventory Stocking Algorithm for Repairable Items with Lateral Resupply”, Working Paper, 1986.

    Google Scholar 

  • Cohen, M.A., P.R. Kleindorfer and H.L. Lee, “Optimal Stocking Policies for Low Usage Items in Multi-Echelon Inventory Systems”, Naval Res. Logist. Quart., 33 (1986), 17–38.

    Article  Google Scholar 

  • Dada, M., “A Two-Echelon Inventory System with Priority Shipments”, Working Paper, 1985.

    Google Scholar 

  • Das, C., “Supply and Redistribution Rules for Two-Location Inventory Systems: One Period Analysis”, Management Sci., 21 (1975), 765–776.

    Article  Google Scholar 

  • Gross, D., “Centralized Inventory Control in Multilocation Supply Systems”, in Multistage Inventory Models and Techniques, H.E. Scharf, D.M. Gilford and M.W. Shelly (Eds.), Stanford University Press, Stanford, CA, 1963, 47–84.

    Google Scholar 

  • Hoadley, B. and D.P. Heyman, “A Two-Echelon Inventory Model with Purchases, Dispositions, Shipments, Returns and Transshipments”, Naval Res. Logist. Quart., 24 (1977), 1–19.

    Article  Google Scholar 

  • Karmarkar, U.S. and N.R. Patel, “The One-Period, N-Location Distribution Problem”, Naval Res. Logist. Quart, 24 (1977), 559–575.

    Article  Google Scholar 

  • Lee, H.L., “A Multi-Echelon Inventory Model for Repairable Items with Emergency Lateral Transshipments”, Management Sci.. 33 (1987), 1302–1316.

    Article  Google Scholar 

  • Palm, C, “Analysis of the Erlang Traffic Formula for Busy Signal Arrangements”, Ericsson Technics. 5 (1938), 39–58.

    Google Scholar 

  • Slay, F.M., “Lateral Resupply in a Multi-Echelon Inventory System”, Working Note, Logistic Management Institute, 1986.

    Google Scholar 

Download references

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 1991 Springer-Verlag Berlin · Heidelberg

About this paper

Cite this paper

Axsäter, S. (1991). An Inventory Model with Lateral Transshipments. In: Fandel, G., Zäpfel, G. (eds) Modern Production Concepts. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-76401-1_22

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-76401-1_22

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-76403-5

  • Online ISBN: 978-3-642-76401-1

  • eBook Packages: Springer Book Archive

Publish with us

Policies and ethics