• About
  • Policies
  • What is open access
  • Library
  • Contact
Advanced search
      View Item 
      •   BUIR Home
      • Scholarly Publications
      • Faculty of Business Administration
      • Department of Management
      • View Item
      •   BUIR Home
      • Scholarly Publications
      • Faculty of Business Administration
      • Department of Management
      • View Item
      JavaScript is disabled for your browser. Some features of this site may not work without it.

      Managing transshipments in a multi-retailer system with approximate policies

      Thumbnail
      View / Download
      692.7 Kb
      Author(s)
      Comez, N.
      Fescioglu Unver, N.
      Date
      2015
      Source Title
      Journal of the Operational Research Society
      Print ISSN
      0160-5682
      Publisher
      Palgrave Macmillan
      Volume
      66
      Issue
      6
      Pages
      947 - 964
      Language
      English
      Type
      Article
      Item Usage Stats
      168
      views
      235
      downloads
      Abstract
      Using the right transshipment policy is important when transshipments are exercised under demand uncertainty. Optimal transshipment policy can be quite complex in a multi-firm system as optimal actions depend on all system variables. Moreover, both how to select requested retailer and how to respond to requests are in question. We introduce simple, close-to-optimal heuristic transshipment policies for multiple retailers. We first show that heuristic policies may perform even better than self-optimal policy, which is explained by Braess’s paradox. Then we test the performances of various heuristics with respect to centrally optimal policy. When retailers can observe others’ inventory levels, more effective transshipments can be made. Otherwise, a random selection performs quite well. We also observe that although always-accept respond policy is quite close to centrally optimal in small systems, the performance of pairwise-optimal holdback levels to respond requests is more clear and consistent for larger systems.
      Keywords
      Inventory Sharing
      Decentralized System
      Heuristic Transshipment Policy
      Braess’s Paradox
      Permalink
      http://hdl.handle.net/11693/12562
      Published Version (Please cite this version)
      http://dx.doi.org/10.1057/jors.2014.59
      Collections
      • Department of Management 639
      Show full item record

      Browse

      All of BUIRCommunities & CollectionsTitlesAuthorsAdvisorsBy Issue DateKeywordsTypeDepartmentsCoursesThis CollectionTitlesAuthorsAdvisorsBy Issue DateKeywordsTypeDepartmentsCourses

      My Account

      Login

      Statistics

      View Usage StatisticsView Google Analytics Statistics

      Bilkent University

      If you have trouble accessing this page and need to request an alternate format, contact the site administrator. Phone: (312) 290 2976
      © Bilkent University - Library IT

      Contact Us | Send Feedback | Off-Campus Access | Admin | Privacy