Rights statement: This is the peer reviewed version of the following article: Glazebrook, K. , Paterson, C. , Rauscher, S. and Archibald, T. (2015), Benefits of Hybrid Lateral Transshipments in Multi‐Item Inventory Systems under Periodic Replenishment. Prod Oper Manag, 24: 311-324. doi:10.1111/poms.12233 which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/poms.12233/abstract This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.
Accepted author manuscript, 187 KB, PDF document
Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
}
TY - JOUR
T1 - Benefits of hybrid lateral transshipments in multi-item inventory systems under periodic replenishment
AU - Glazebrook, Kevin
AU - Paterson, Colin
AU - Rauscher, Sandra
AU - Archibald, Thomas
N1 - This is the peer reviewed version of the following article: Glazebrook, K. , Paterson, C. , Rauscher, S. and Archibald, T. (2015), Benefits of Hybrid Lateral Transshipments in Multi‐Item Inventory Systems under Periodic Replenishment. Prod Oper Manag, 24: 311-324. doi:10.1111/poms.12233 which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/poms.12233/abstract This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.
PY - 2015/2
Y1 - 2015/2
N2 - Lateral transshipments are a method of responding to shortages of stock in a network of inventory-holding locations. Conventional reactive approaches only seek to meet immediate shortages. The study proposes hybrid transshipments which exploit economies of scale by moving additional stock between locations to prevent future shortages in addition to meeting immediate ones. The setting considered is motivated by retailers who operate networks of outlets supplying car parts via a system of periodic replenishment. It is novel in allowing non-stationary stochastic demand and general patterns of dependence between multiple item types. The generality of our work makes it widely applicable. We develop an easy-to-compute quasi-myopic heuristic for determining how hybrid transshipments should be made. We obtain simple characterizations of the heuristic and demonstrate its strong cost performance in both small and large networks in an extensive numerical study.
AB - Lateral transshipments are a method of responding to shortages of stock in a network of inventory-holding locations. Conventional reactive approaches only seek to meet immediate shortages. The study proposes hybrid transshipments which exploit economies of scale by moving additional stock between locations to prevent future shortages in addition to meeting immediate ones. The setting considered is motivated by retailers who operate networks of outlets supplying car parts via a system of periodic replenishment. It is novel in allowing non-stationary stochastic demand and general patterns of dependence between multiple item types. The generality of our work makes it widely applicable. We develop an easy-to-compute quasi-myopic heuristic for determining how hybrid transshipments should be made. We obtain simple characterizations of the heuristic and demonstrate its strong cost performance in both small and large networks in an extensive numerical study.
KW - inventory control
KW - multi-item
KW - lateral transshipments
KW - dynamic programming
U2 - 10.1111/poms.12233
DO - 10.1111/poms.12233
M3 - Journal article
VL - 24
SP - 311
EP - 324
JO - Production and Operations Management
JF - Production and Operations Management
SN - 1059-1478
IS - 2
ER -