Index heuristics for transshipment decisions in multilocation inventory systems

Thomas Archibald, Daniel Black, Kevin Glazebrook

Research output: Contribution to conferenceAbstractpeer-review

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.
Original languageEnglish
Publication statusPublished - 2006
Event21st European Conference of Operational Research (EURO XXI) - Reykjavik, Iceland
Duration: 2 Jul 20065 Jul 2006

Conference

Conference21st European Conference of Operational Research (EURO XXI)
CountryIceland
CityReykjavik
Period2/07/065/07/06

Keywords

  • Programming, Dynamic
  • Stochastic Models
  • Production and Inventory Systems

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