A Two-Stage Inventory Model with Transshipment Costs

摘要

Transportation and inventory are two major drivers in a supply chain network. This paper provides near-optimalrnpolicies for inventory models that allow various modes of shipping freight, namely, truckload transportation andrnless-than-truckload transportation. In particular, a heuristic algorithm for a one-warehouse multi-retailer system isrnpresented that is shown to be 95% effective.