Service differentiation through selective lateral transshipments

E.M. Alvarez, M.C.Z. van der Heijden, I.M.H. Vliegen, W.H.M. Zijm

Onderzoeksoutput: Bijdrage aan tijdschriftTijdschriftartikelAcademicpeer review

11 Citaten (Scopus)

Samenvatting

We consider a multi-item spare parts problem with multiple warehouses and two customer classes, where lateral transshipments are used as a differentiation tool. Specifically, premium requests that cannot be met from stock at their preferred warehouse may be satisfied from stock at other warehouses (so-called lateral transshipments). We first derive approximations for the mean waiting time per class in a single-item model with selective lateral transshipments. Next, we embed our method in a multi-item model minimizing the holding costs and costs of lateral and emergency shipments from upstream locations in the network. Compared to the option of using only selective emergency shipments for differentiation, the addition of selective lateral transshipments can lead to significant further cost savings (14% on average). ?? 2014 Elsevier B.V. All rights reserved.
Originele taal-2Engels
Pagina's (van-tot)824-835
Aantal pagina's12
TijdschriftEuropean Journal of Operational Research
Volume237
Nummer van het tijdschrift3
DOI's
StatusGepubliceerd - 16 sep. 2014

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