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dc.contributor.authorÇomez, N.en_US
dc.contributor.authorStecke, K. E.en_US
dc.contributor.authorÇakanyıldırım, M.en_US
dc.date.accessioned2015-07-28T12:04:32Z
dc.date.available2015-07-28T12:04:32Z
dc.date.issued2012-02-28en_US
dc.identifier.issn1523-4614
dc.identifier.urihttp://hdl.handle.net/11693/13075
dc.description.abstractA decentralized system of competing retailers that order and sell the same product in a sales season is studied. When a customer demand occurs at a stocked-out retailer, that retailer requests a unit to be transshipped from another retailer who charges a transshipment price. If this request is rejected, the unsatisfied customer may go to another retailer with a customer overflow probability. Each retailer decides on the initial order quantity from a manufacturer and on the acceptance/rejection of each transshipment request. For two retailers, we show that retailers' optimal transshipment policies are dynamic and characterized by chronologically nonincreasing inventory holdback levels. We analytically study the sensitivity of holdback levels to explain interesting findings, such as smaller retailers and geographically distant retailers benefit more from transshipments. Numerical experiments show that retailers substantially benefit from using optimal transshipment policies compared to no sharing. The expected sales increase in all but a handful of over 3,000 problem instances. Building on the two-retailer optimal policies, we suggest an effective heuristic transshipment policy for a multiretailer system.en_US
dc.language.isoEnglishen_US
dc.source.titleManufacturing and Service Operations Managementen_US
dc.relation.isversionofhttp://dx.doi.org/10.1287/msom.1110.0364en_US
dc.subjectDynamic transshipment policyen_US
dc.subjectDemand overflowen_US
dc.subjectDecentralized distribution systemen_US
dc.titleIn-Season transshipments among competitive retailersen_US
dc.typeArticleen_US
dc.departmentDepartment of Managementen_US
dc.citation.spage290en_US
dc.citation.epage300en_US
dc.citation.volumeNumber14en_US
dc.citation.issueNumber2en_US
dc.identifier.doi10.1287/msom.1110.0364en_US
dc.publisherINFORMSen_US
dc.identifier.eissn1526-5498


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