Unidirectional Transshipment Model and Algorithm in Multi-location Inventory of Spare Part
Hua Li
Abstract
Hua Li
Abstract
Management of multi-echelon transshipments is an effective approach to improving support effectiveness.A common assumption in early papers is that transshipments are allowed between all locations.However,this configuration may not be the best choice in many fields.Focusing on the problem,a system where transshipments are allowed only in one direction is provided.Such a policy may be of interest if the locations have very different shortage costs.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 transshipment models improve various system performance indicators such as the fill rate,the average inventory on hand,and the average backorder level.The proposed method provides a good account of how unidirectional lateral transshipments affect the inventory system,which is of considerable significance for enriching the inventory theory and supplying decision assistance for a reasonable optimization project.
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Management of multi-echelon transshipments is an effective approach to improving support effectiveness.A common assumption in early papers is that transshipments are allowed between all locations.However,this configuration may not be the best choice in many fields.Focusing on the problem,a system where transshipments are allowed only in one direction is provided.Such a policy may be of interest if the locations have very different shortage costs.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 transshipment models improve various system performance indicators such as the fill rate,the average inventory on hand,and the average backorder level.The proposed method provides a good account of how unidirectional lateral transshipments affect the inventory system,which is of considerable significance for enriching the inventory theory and supplying decision assistance for a reasonable optimization project.
Key concepts: Transshipment (information security), Spare part, Economic shortage, Mathematical optimization, Heuristic, Computer science, Operations research, Heuristics