Pm. Needham et Pt. Evers, THE INFLUENCE OF INDIVIDUAL COST FACTORS ON THE USE OF EMERGENCY TRANSSHIPMENTS, Transportation research. Part E, Logistics and transportation review, 34(2), 1998, pp. 149-160
Citations number
30
Categorie Soggetti
Transportation,"Engineering, Civil",Transportation,"Operatione Research & Management Science
Emergency transshipments represent one way in which logistics managers
can reduce inventories while simultaneously maintaining customer serv
ice levels. This paper examines the cost implications of these actions
and offers a straightforward approach to analyzing their suitability.
Simulation results indicate that the cost of a stockout is the primar
y determinant in the transshipment decision, with higher stockout cost
levels generally increasing the likelihood that transshipment usage w
ill lead to lower overall cost. A meta-model is proposed as a practica
l means of providing insight into when emergency transshipments should
be employed. (C) 1998 Elsevier Science Ltd. All rights reserved.