The influence of individual cost factors on the use of emergency transshipments

Paul M. Needham and Philip T. Evers

Transportation Research Part E: Logistics and Transportation Review, 1998, vol. 34, issue 2, 149-160

Abstract: Emergency transshipments represent one way in which logistics managers can reduce inventories while simultaneously maintaining customer service levels. This paper examines the cost implications of these actions and offers a straightforward approach to analyzing their suitability. Simulation results indicate that the cost of a stockout is the primary determinant in the transshipment decision, with higher stockout cost levels generally increasing the likelihood that transshipment usage will lead to lower overall cost. A metamodel is proposed as a practical means of providing insight into when emergency transshipments should be employed.

Keywords: Inventory; control; metamodel; simulation; transshipments (search for similar items in EconPapers)
Date: 1998
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Citations: View citations in EconPapers (14)

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