Abstract
Lateral transshipment could be used as an effective and fast replenishment policy in inventory systems. However, in decentralized supply chain systems, imperfect transshipment planning can make total costs increasingly. In this paper, we consider a single-item, multi-location, two-echelon supply chain system with lateral transshipment existence. A continuous review order-up-to policy is assumed for the inventory control of the item. Two objectives are investigated: total costs of the supplier, total costs of the retailers’ coalition. A stochastic multi-objective decision model is established to describe systems behavior. Based on stochastic quasi gradient algorithm (SQGA) and genetic algorithm (GA), a solution procedure is developed to obtain the with-probability-1 (w.p.1) optimal order-up-to levels. An extensive numerical experiment shows the model and algorithm is very efficient. We also test cost parameters sensitivity to the model.
This work was partially by the National Social Science Foundation of China under grant No. 10CGL025 and by the Jiangsu University Social Science Foundation under grant No. 2010SJB630055 and by the Nantong University Social Science Foundation under grant No. 09W021 and by the Nantong University Nature Science Foundation under grant No. 10ZJ010.
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Chen, J., Lu, J. (2011). Modeling Multilocation Transshipment with Application of Stochastic Programming Approach. In: Tang, Y., Huynh, VN., Lawry, J. (eds) Integrated Uncertainty in Knowledge Modelling and Decision Making. IUKM 2011. Lecture Notes in Computer Science(), vol 7027. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-24918-1_18
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DOI: https://doi.org/10.1007/978-3-642-24918-1_18
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