Corrective Lateral Transshipment Application in a Centralized Inventory System With Random Demand: Case Study

Abstract

Our research work aims to study the lateral transshipment problem as a mode of cooperation between different retailers who are located at the same level. In the first work, we apply a simulation-optimization approach based on a metamodel to search for the different measures of the initial level of replenishment. Then, by applying a series of simulation experiments by the ARENA software to select the best lateral transshipment policy. This aims to maximize the expected average global gain and minimize the average global Disservice rate. For this, several Transshipment policies will be tested, for example; non-pooling, full pooling and partial pooling policies depending on the selection of physical inventory thresholds.