Projects per year
Abstract
The use of transshipments is an important issue for the management of
inventory systems in the retail sector. Many existing models restrict
the timing of transshipments to simplify analysis. We propose a
Markov decision process model that allows transshipments to occur at
any time in response to stockouts. We develop solution methods for
this model using dimensionality reduction techniques. We use
simulation to demonstrate that, compared to simple transshipment
policies commonly applied in practice, our approach can deliver
significant savings in the cost of managing large systems.
inventory systems in the retail sector. Many existing models restrict
the timing of transshipments to simplify analysis. We propose a
Markov decision process model that allows transshipments to occur at
any time in response to stockouts. We develop solution methods for
this model using dimensionality reduction techniques. We use
simulation to demonstrate that, compared to simple transshipment
policies commonly applied in practice, our approach can deliver
significant savings in the cost of managing large systems.
| Original language | English |
|---|---|
| Publication status | Published - 2006 |
| Event | 21st European Conference of Operational Research (EURO XXI) - Reykjavik, Iceland Duration: 2 Jul 2006 → 5 Jul 2006 |
Conference
| Conference | 21st European Conference of Operational Research (EURO XXI) |
|---|---|
| Country/Territory | Iceland |
| City | Reykjavik |
| Period | 2/07/06 → 5/07/06 |
Keywords / Materials (for Non-textual outputs)
- Programming, Dynamic
- Stochastic Models
- Production and Inventory Systems
Fingerprint
Dive into the research topics of 'Index heuristics for transshipment decisions in multilocation inventory systems'. Together they form a unique fingerprint.Projects
- 1 Finished
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OPTIMISING REPLENISHMENT & TRANSSHIPMENT POLICIES IN MULTI-LOCATION INVENTORY SYSTEMS
10/01/05 → 9/01/07
Project: Research