Name
Abstract | ||
|---|---|---|
We consider a single-period multi-location inventory system where inventory choices at each location are centrally coordinated.
Transshipments are allowed as recourse actions in order to reduce the cost of shortage or surplus inventory after demands
are realized. This problem has not been solved to optimality before for more than two locations with general cost parameters.
In this paper we present a simple and intuitive model that enables us to characterize optimal inventory and transshipment
policies for three and four locations as well. The insight gained from these analytical results leads us to examine the optimality
conditions of a greedy transshipment policy. We show that this policy will be optimal for two and three locations. For the
n location model we characterize the necessary and sufficient conditions on the cost structure for which the greedy transshipment
policy will be optimal. |
Year | DOI | Venue |
|---|---|---|
2007 | 10.1007/s10852-006-9049-y | J. Math. Model. Algorithms |
Keywords | Field | DocType |
multi-location inventory system · transshipment · cost parameter. | Transshipment,Mathematical optimization,Inventory system,Location model,Economic shortage,Mathematics | Journal |
Volume | Issue | ISSN |
6 | 1 | 1572-9214 |
Citations | PageRank | References |
7 | 0.67 | 4 |
Authors | ||
2 | ||
Name | Order | Citations | PageRank |
|---|---|---|---|
| Lars Magne Nonås | 1 | 18 | 1.65 |
| Kurt Jørnsten | 2 | 232 | 24.52 |