Application of Transshipment in the Supply Chain Management in Tunisia

Elleuch Fadoi and Semi Boudabbous

International Journal of Finance, Insurance and Risk Management, 2021, vol. 11, issue 4, 81-103

Abstract: Purpose: In, our paper, we have studied the problem of lateral transshipment as being a mode of cooperation in between the different retailers which are located near, to improve the supply chain management. Design/Methodology/Approach: First, a simulation-optimization approach based on a metamodel is applied to find the different measures of the initial level of replenishment. Secondly, a series of simulation experiments are performed to find the best transshipment policy, in terms, of maximizing the expected Average Global Profit and minimizing the Average Global Desservice Rate. Findings: The policies tested are no-pooling, complete-pooling, and various partial pooling policies depending on the selection of physical inventory thresholds. The best transshipment policy is partial pooling with such a threshold equal to “Security Stock = 30% of PSiT”. Practical implementation: Partial pooling is a very interesting transshipment policy and should be further addressed in future research.

Keywords: Transshipment policies; complete-pooling; partial-pooling; Simulation; Vendor-managed inventory; Supply Chain Management; partial-pooling threshold. (search for similar items in EconPapers)
JEL-codes: R40 R41 R49 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:ers:ijfirm:v:11:y:2021:i:4:p:81-103

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