Models of transshipments in inventory systems generally assume that demand is observed. This research relaxes this assumption and proposes a model that can be used to plan reactive (i.e. to meet existing shortages) and proactive (i.e. to meet anticipated future shortages) transshipments in a general setting. Approximate dynamic programming is applied to develop a heuristic for the model. A numerical study shows that the proposed heuristic can lead to substantial cost savings compared to commonly used policies.
|Publication status||Published - 2016|
|Event||28th European Conference on Operational Research (EURO 2016) - Poznan, Poland|
Duration: 3 Jul 2016 → 6 Jul 2016
|Conference||28th European Conference on Operational Research (EURO 2016)|
|Period||3/07/16 → 6/07/16|