Warehouse capacity sharing via transshipment for an integrated two-echelon supply chain

Xuehao Feng, Ilkyeong Moon and Kwangyeol Ryu

Transportation Research Part E: Logistics and Transportation Review, 2017, vol. 104, issue C, 17-35

Abstract: Warehouse capacity constraint has been one obstacle to achieving the channel-wide optimal decision in inventory management. We studied an integrated inventory model consisting of a single vendor and multiple buyers with warehouse capacity sharing via transshipment. We proposed an optimal transshipment policy by developing nonlinear programming models and genetic algorithms as well as obtaining Karush-Kuhn-Tucker points. This inventory policy can significantly reduce the channel-wide cost and the performance is influenced by the consideration of fixed transshipment costs. Sensitivity analyses show that parameters have different impacts on the channel-wide cost and the performances of the algorithms.

Keywords: Integrated supply chain; Warehouse capacity; Lateral transshipment; Genetic algorithm; Fixed transshipment cost (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (17)

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DOI: 10.1016/j.tre.2017.04.014

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