Lateral stock transshipments in a two‐location inventory system with fixed and joint replenishment costs

Yale T. Herer and Ayelet Rashit

Naval Research Logistics (NRL), 1999, vol. 46, issue 5, 525-547

Abstract: We address the problem of inventory management in a two‐location inventory system, in which the transshipments are carried out as means of emergency or alternative supply after demand has been realized. This model differs from previous ones as regards its replenishment costs structure, in which nonnegligible fixed replenishment costs and a joint replenishment cost are considered. The single period planning horizon is analyzed, with the form and several properties of the optimal replenishment and transshipment policies developed, discussed and illustrated. © 1999 John Wiley & Sons, Inc. Naval Research Logistics 46: 525–547, 1999

Date: 1999
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Citations: View citations in EconPapers (13)

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https://doi.org/10.1002/(SICI)1520-6750(199908)46:53.0.CO;2-E

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Persistent link: https://EconPapers.repec.org/RePEc:wly:navres:v:46:y:1999:i:5:p:525-547

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