Inventory Coordinating Contract for the Two-location Supply Chain with Lateral Transshipment

2012 ◽  
Author(s):  
Guangtao Guo ◽  
Xiaohong Li ◽  
Da Yang ◽  
Jiaying Yuan
Keyword(s):  
Supply Chain ◽  
Lateral Transshipment

Itemized platelet supply chain with lateral transshipment under uncertainty evaluating inappropriate output in laboratories

2019 ◽  
Vol 68 ◽  
pp. 100697 ◽  
Author(s):  
Niloofar Gilani Larimi ◽  
Saeed Yaghoubi ◽  
Seyyed-Mahdi Hosseini-Motlagh
Keyword(s):  
Supply Chain ◽  
Lateral Transshipment

Stochastic inventory-routing problem with lateral transshipment for perishable product

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Parviz Fattahi ◽  
Mehdi Tanhatalab
Keyword(s):  
Supply Chain ◽  
Valid Inequalities ◽  
Upper And Lower Bounds ◽  
Inventory Routing ◽  
Routing Problem ◽  
Content Type ◽  
Inventory Routing Problem ◽  
Perishable Product ◽  
New Variant ◽  
Lateral Transshipment

Purpose This study aims to design a supply chain network in an uncertain environment while exists two options for distribution of the perishable product and production lot-sizing is concerned. Design/methodology/approach Owing to the complexity of the mathematical model, a solution approach based on a Lagrangian relaxation (LR) heuristic is developed which provides good-quality upper and lower bounds. Findings The model output is discussed through various examples. The introduction of some enhancements and using some heuristics results in better outputs in the solution procedure. Practical implications This paper covers the modeling of some real-world problems in which demand is uncertain and managers face making some concurrent decisions related to supply chain management, transportation and logistics and inventory control issues. Furthermore, considering the perishability of product in modeling makes the problem more practically significant as these days there are many supply chains handling dairy and other fresh products. Originality/value Considering uncertainty, production, transshipment and perishable product in the inventory-routing problem makes a new variant that has not yet been studied. The proposed novel solution is based on the LR approach that is enhanced by some heuristics and some valid inequalities that make it different from the current version of the LR used by other studies.

scholarly journals MATERIAL TRANSSHIPMENT FOR PRECAST FABRICATION

2013 ◽  
Vol 19 (3) ◽  
pp. 335-347 ◽  
Author(s):  
Chien-Ho Ko
Keyword(s):  
Supply Chain ◽  
Production Management ◽  
Lead Times ◽  
Construction Sites ◽  
Material Management ◽  
Supply Chain System ◽  
Operational Conditions ◽  
Material Supply ◽  
Lateral Transshipment ◽  
Shortage Costs

Materials required for precast fabrication are dissimilar to those cast at construction sites. Fabricators who lack materials must wait until specific suppliers deliver the required materials. The objective of this study is to reduce total material management costs in the supply chain system through the most advantageous transshipment strategies. A material supply chain framework that enables fabricators to implement lateral transshipment is first proposed. Transshipment strategies are then formulated into a mathematical model. The most advantageous transshipment strategies are analyzed using computer simulation. Diverse order lead times, demands, transportation costs, and shortage costs are simulated to approximate operational conditions encountered in supply chain systems. Through various experiments, the most advantageous strategy for precast fabrication industry can be found. In addition, four rules are developed based on simulation results to enhance transshipment decision making. This research is one of the pioneering studies applying lateral transshipment to precast production management.

scholarly journals Dynamic Complexities in a Supply Chain System with Lateral Transshipments

Complexity ◽  
2018 ◽  
Vol 2018 ◽  
pp. 1-15 ◽  
Author(s):  
Yongchang Wei ◽  
Fangyu Chen ◽  
Feng Xiong
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
State Space Model ◽  
Bullwhip Effect ◽  
Performance Measurements ◽  
Supply Chain System ◽  
Chain System ◽  
Customer Service Level ◽  
Lateral Transshipment ◽  
The Stability

The horizontal interaction between retailers, coupled with replenishment rules and time delays, makes the dynamics in supply chain systems highly complicated. This paper aims to explore the impacts of lateral transshipments on the stability, bullwhip effect, and other performance measurements in the context of a two-tiered supply chain system composed of one supplier and two retailers. In particular, we developed a unified discrete-time state space model to address two different scenarios of placing orders. Analytical stability results are derived, through which we found that inappropriate lateral transshipment policies readily destabilize the supply chain system. Moreover, the lead time of lateral transshipments further complicates the stability problem. Theoretical results are validated through simulation experiments and the influences of system parameters on performance measures are investigated numerically. Numerical simulations show that lateral transshipments help improve the customer service level for both retailers. It is also interesting to observe that the demand of the two retailers can be satisfied even if only one retailer places orders from the upstream supplier.

scholarly journals Multi-Item Distribution Policies with Supply Hub and Lateral Transshipment

2015 ◽  
Vol 2015 ◽  
pp. 1-12 ◽  
Author(s):  
Zhong Jin-Hong ◽  
Jiang Rui-Xuan ◽  
Zheng Gui
Keyword(s):  
Supply Chain ◽  
Solution Method ◽  
Independent Random Variables ◽  
Customer Requirements ◽  
Parent Population ◽  
Distribution Models ◽  
Supply Chain System ◽  
Lateral Transshipment ◽  
Policy Supply ◽  
Coordination Policy

Supply Hub is defined as the horizontal coordination among the suppliers while lateral transshipment is a horizontal coordination policy among the retailers. By considering the Supply Hub and lateral transshipment simultaneously, ones can reduce the total cost of the supply chain system and improve the response to customer requirement and the customers’ satisfaction. We investigate the distribution policies for the supply chain which consists of multisuppliers, single Supply Hub, and multidistributors. In the system, both Supply Hub and distributors adopt the (t,S) policy, Supply Hub will not be out of stock, and backlogging is forbidden. Customer requirements at distributors are assumed to be independent random variables complying with uniform distribution; transshipment is assumed to be bidirectional, instantaneous, and emergent. We establish the distribution models, respectively, for the cases of transshipment or no transshipment. For the case with transshipment, we design a GA-based solution method involving a two-stage selection technology, that is, firstly, selecting individuals from parent population to generate offspring chromosomes and, secondly, selecting individuals from the interim population comprising all of the parent and offspring genomes, to form the next-generation population. We show that lateral transshipment can increase the overall profit of the supply chain by the comparison examinations between the models with and without transshipment.

scholarly journals Integrating Mathematical and Simulation Approach for Optimizing Production and Distribution Planning With Lateral Transshipment in a Supply Chain

2022 ◽  
Vol 15 (1) ◽  
pp. 0-0
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Optimal Solution ◽  
Integrated Approach ◽  
Service Level ◽  
Computational Time ◽  
Customer Service Level ◽  
Simulation Based ◽  
Production And Distribution ◽  
Lateral Transshipment

Supply chain planning aims to maximize the chain's profit and find an effective way to integrate production and distribution. A mathematical and simulation-based optimizations are two common disciplines in which this study integrates both of them together to consolidate their advantages. A mathematical model is formulated to find an optimal production-distribution plan. Then, the result is fed into a simulation model operating under uncertainty to verify the feasibility of the plan. Our integrated approach tries to find a feasible plan that satisfies both required customer service level and makespan limitation where safety stock is used to hedge against uncertainties, and lateral transshipment is used for emergency measures against excessive fluctuation of customer demand. A case study that optimizes the profit of an entire chain is used to demonstrate the algorithm. The outcomes of the study show that our proposed approach can yield feasible results (with near or even optimal solution) with much faster computational time as compared to the traditional simulation-based optimization.

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