A Simulation Based Study on the Effect of the Retailer Transshipment Interaction

소매상간 트랜쉽먼트 상호작용에 따른 공급사슬 성과에 관한 시뮬레이션 기반 연구

  • Published : 2007.11.09

Abstract

In multi-location inventory systems, lost sales due to stockout decreases not only retailers' profit but also whole supply chain's profit. Transshipment between retailers has been considered to be a major solution to the stockout problem, and many supply chains implement transshipment coalition among retailers. However, in practical situations, retailers occasionally refuses to accept the transshipment requests, mainly because they concern the future stockout possibilities of their own. Thus, the objective of this research is to analyze the effect of retailers' interaction under the transshipment coalition environment based on the simulations, and to provide effective policies to promote retailers' transshipment cooperation. Policies using penalty and incentive scheme are proposed, and it is shown that using proposed policies both the retailers' and the headquarter's profit can be increased.

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