Abstract
We analyze lateral transshipment for items whose demand is driven by an arbitrary point process. We find conditions under which lateral transshipment stochastically lowers the cost of a system of demand centers. Our main structural result is that transshipment works best for slow-moving items, such as spare-parts, when the demands are driven by non-homogeneous or homogeneous Poisson processes. We also obtain general results that apply when demand is driven by an arbitrary point process.
Original language | American English |
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Journal | Operations Research Letters |
Volume | 41 |
DOIs | |
State | Published - Mar 1 2013 |
Keywords
- Lateral transshipment
- Non-homogeneous Poisson process
- Point process
DC Disciplines
- Operations and Supply Chain Management
- Business Administration, Management, and Operations