Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/188626 
Year of Publication: 
2014
Citation: 
[Journal:] Journal of Industrial Engineering and Management (JIEM) [ISSN:] 2013-0953 [Volume:] 7 [Issue:] 3 [Publisher:] OmniaScience [Place:] Barcelona [Year:] 2014 [Pages:] 681-697
Publisher: 
OmniaScience, Barcelona
Abstract: 
Purpose: Preventivelateral transshipment can respond to customers who will choose a substitute or to give up when the product is out of stock. Motivatedby the common practice, adecision-making model of preventive lateral transshipment with multi sellingperiods is developed. The purpose of the paper is to explore the optimal preventive lateral transshipment policy with multi selling periods. Design/methodology/approach: With adiscrete-time dynamic programming model, we take a dynamic programming approach and adopt backward induction to analyze two retailers' preventive lateral transshipment policy. Findings: The optimal preventivelateral transshipment policy is a threshold policy which depends on both theremaining selling periods and inventory level. The above properties ensure thattwo retailers can control inventory with preventive lateral transshipment. Practical implications: The retailer can adjust inventory via the thresholdtype policy. The simple decisionrule which compares on-hand inventory level with the critical inventory level can be used to control inventory by preventive lateral transshipment. Originality/value: A discrete-timedecision-making model of preventive lateral transshipment policy isformulated. This model takes consideration of multi selling periods, which is different from most existing researches on preventive lateral transshipment.
Subjects: 
preventive lateral transshipment
the transship-up-to level
the transship-down-to level
inventory control policy
multi selling periods
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

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