IDEAS home Printed from https://ideas.repec.org/a/wly/navres/v39y1992i1p29-40.html
   My bibliography  Save this article

Multiechelon inventory systems with lateral supply

Author

Listed:
  • Craig C. Sherbrooke

Abstract

We develop approximations to estimate the expected backorders in a multiechelon system in which lateral supply actions between bases are allowed when a backorder occurs. These approximations are easy to compute, and the average absolute error over a wide range of parameter values is less than 4% when items are depot repairable, even when bases are dissimilar. With lateral supply, backorder reductions of 30‐50% are not uncommon, and a 72% reduction was observed in two cases. Lateral supply becomes more important with low demand rates. A similar approach was unsuccessful for base‐repairable items. However, lateral supply has a beneficial effect only when the lateral supply time is very short, 1/4 or less of the average base repair time. Even in such cases lateral supply is unlikely to be important in an actual application, because base management can expedite repair of critical items.

Suggested Citation

  • Craig C. Sherbrooke, 1992. "Multiechelon inventory systems with lateral supply," Naval Research Logistics (NRL), John Wiley & Sons, vol. 39(1), pages 29-40, February.
    • Handle: RePEc:wly:navres:v:39:y:1992:i:1:p:29-40
    DOI: 10.1002/1520-6750(199202)39:13.0.CO;2-L
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/1520-6750(199202)39:13.0.CO;2-L
    Download Restriction: no
    File URL: https://libkey.io/10.1002/1520-6750(199202)39:13.0.CO;2-L?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sven Axsäter, 1990. "Modelling Emergency Lateral Transshipments in Inventory Systems," Management Science, INFORMS, vol. 36(11), pages 1329-1338, November.
    2. Hau L. Lee, 1987. "A Multi-Echelon Inventory Model for Repairable Items with Emergency Lateral Transshipments," Management Science, INFORMS, vol. 33(10), pages 1302-1316, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jian Yang & Zhaoqiong Qin, 2007. "Capacitated Production Control with Virtual Lateral Transshipments," Operations Research, INFORMS, vol. 55(6), pages 1104-1119, December.
    2. van Wijk, A.C.C. & Adan, I.J.B.F. & van Houtum, G.J., 2019. "Optimal lateral transshipment policies for a two location inventory problem with multiple demand classes," European Journal of Operational Research, Elsevier, vol. 272(2), pages 481-495.
    3. Dhahri, Akrem & Gharbi, Ali & Ouhimmou, Mustapha, 2022. "Integrated production-transshipment control policy for a two-location unreliable manufacturing system," International Journal of Production Economics, Elsevier, vol. 247(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Olsson, Fredrik, 2009. "Optimal policies for inventory systems with lateral transshipments," International Journal of Production Economics, Elsevier, vol. 118(1), pages 175-184, March.
    2. Alvarez, E.M. & van der Heijden, M.C. & Vliegen, I.M.H. & Zijm, W.H.M., 2014. "Service differentiation through selective lateral transshipments," European Journal of Operational Research, Elsevier, vol. 237(3), pages 824-835.
    3. Tagaras, George, 1999. "Pooling in multi-location periodic inventory distribution systems," Omega, Elsevier, vol. 27(1), pages 39-59, February.
    4. Lee, Young Hae & Jung, Jung Woo & Jeon, Young Sang, 2007. "An effective lateral transshipment policy to improve service level in the supply chain," International Journal of Production Economics, Elsevier, vol. 106(1), pages 115-126, March.
    5. Guangyuan Yang & Rommert Dekker, 2010. "Service Parts Inventory Control with Lateral Transshipment that takes Time," Tinbergen Institute Discussion Papers 10-025/4, Tinbergen Institute, revised 10 Mar 2010.
    6. Paterson, Colin & Kiesmüller, Gudrun & Teunter, Ruud & Glazebrook, Kevin, 2011. "Inventory models with lateral transshipments: A review," European Journal of Operational Research, Elsevier, vol. 210(2), pages 125-136, April.
    7. Xinxin Hu & Izak Duenyas & Roman Kapuscinski, 2008. "Optimal Joint Inventory and Transshipment Control Under Uncertain Capacity," Operations Research, INFORMS, vol. 56(4), pages 881-897, August.
    8. Minner, Stefan & Silver, Edward A. & Robb, David J., 2003. "An improved heuristic for deciding on emergency transshipments," European Journal of Operational Research, Elsevier, vol. 148(2), pages 384-400, July.
    9. De‐bi Cao & Edward A. Silver, 2005. "A dynamic allocation heuristic for centralized safety stock," Naval Research Logistics (NRL), John Wiley & Sons, vol. 52(6), pages 513-526, September.
    10. Zhang, Jiaqi & Archibald, Thomas W., 2011. "A semi-Markov model with holdout transshipment policy and phase-type exponential lead time," European Journal of Operational Research, Elsevier, vol. 211(3), pages 650-657, June.
    11. Tiacci, Lorenzo & Saetta, Stefano, 2011. "Reducing the mean supply delay of spare parts using lateral transshipments policies," International Journal of Production Economics, Elsevier, vol. 133(1), pages 182-191, September.
    12. Paterson, Colin & Teunter, Ruud & Glazebrook, Kevin, 2012. "Enhanced lateral transshipments in a multi-location inventory system," European Journal of Operational Research, Elsevier, vol. 221(2), pages 317-327.
    13. Diks, E. B. & de Kok, A. G. & Lagodimos, A. G., 1996. "Multi-echelon systems: A service measure perspective," European Journal of Operational Research, Elsevier, vol. 95(2), pages 241-263, December.
    14. Fritzsche, R., 2012. "Cost adjustment for single item pooling models using a dynamic failure rate: A calculation for the aircraft industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(6), pages 1065-1079.
    15. Yale T. Herer & Ayelet Rashit, 1999. "Lateral stock transshipments in a two‐location inventory system with fixed and joint replenishment costs," Naval Research Logistics (NRL), John Wiley & Sons, vol. 46(5), pages 525-547, August.
    16. Kochel, Peter, 1996. "On queueing models for some multi-location problems," International Journal of Production Economics, Elsevier, vol. 45(1-3), pages 429-433, August.
    17. Jason Acimovic & Stephen C. Graves, 2015. "Making Better Fulfillment Decisions on the Fly in an Online Retail Environment," Manufacturing & Service Operations Management, INFORMS, vol. 17(1), pages 34-51, February.
    18. Yang, Guangyuan & Dekker, Rommert & Gabor, Adriana F. & Axsäter, Sven, 2013. "Service parts inventory control with lateral transshipment and pipeline stockflexibility," International Journal of Production Economics, Elsevier, vol. 142(2), pages 278-289.
    19. Wong, Hartanto & Cattrysse, Dirk & Van Oudheusden, Dirk, 2005. "Inventory pooling of repairable spare parts with non-zero lateral transshipment time and delayed lateral transshipments," European Journal of Operational Research, Elsevier, vol. 165(1), pages 207-218, August.
    20. Baskaya, Serhat & Ertem, Mustafa Alp & Duran, Serhan, 2017. "Pre-positioning of relief items in humanitarian logistics considering lateral transhipment opportunities," Socio-Economic Planning Sciences, Elsevier, vol. 57(C), pages 50-60.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:navres:v:39:y:1992:i:1:p:29-40. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1520-6750 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.