Modeling of Spare Parts in Multi-Location Inventory System with Unidirectional Lateral Transshipments

Management of multi-echelon with unidirectional transshipments is an effective approach to improve support effectiveness. Focus on the problem, a system where transshipments are allowed only in one direction is provided. The technique is solved in a simple and efficient heuristic algorithm, and the simulation shows that the model produces accurate estimation. Numerical studies show unidirectional transshipments improves various system performance measures such as the fill rate, the average inventory on hand, and the average backorder level. The suggest method gives a good picture of how considered unidirectional lateral transshipments affect the inventory system, which has large significance for completing inventory theory and supplying decision assistance for a reasonable optimization project.