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

In: Innovation, Research and Development and Capital Evaluation

Author

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  • Elleuch Fadoi

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.

Suggested Citation

  • Elleuch Fadoi, 2022. "The "Lateral Transshipment" is a Cooperative Tool for Optimizing the Profitability of a Distribution System," Chapters, in: Luigi Aldieri (ed.), Innovation, Research and Development and Capital Evaluation, IntechOpen.
    • Handle: RePEc:ito:pchaps:260660
    DOI: 10.5772/intechopen.101992
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    More about this item

    Keywords

    transshipment policies; complete-pooling; partial-pooling; simulation; vendor-managed inventory; supply chain management; partial-pooling threshold;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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