The "Lateral Transshipment" is a Cooperative Tool for Optimizing the Profitability of a Distribution System

Elleuch Fadoi

A chapter in Innovation, Research and Development and Capital Evaluation from IntechOpen

Abstract: In this chapter, we discuss a network consisting of a distribution center (or central depot) and two retailers who serve customers. D1 andD2 represent, respectively, the demands of retailer 1 and 2. We assume that the demandDi (i = 1, 2) at retailer i follows a normal distribution with mean ?i and standard deviation?i (known). This analysis makes it possible to assess the effect of emergency transshipment both at the level of the Average Global Profit and of the Average Global Desservice Rate. In this chapter, we consider a centralized one-echelon supply chain with two-retailers selling products and facing stochastic demand.

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: M10 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ito:pchaps:260660

DOI: 10.5772/intechopen.101992

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