Meeting correlated spare part demands with optimal transshipments

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dc.citation.epage27en_US
dc.citation.issueNumber2en_US
dc.citation.spage1en_US
dc.citation.volumeNumber1en_US
dc.contributor.authorÇömez, N.en_US
dc.contributor.authorStecke, K. E.en_US
dc.contributor.authorÇakanyıldırım, M.en_US
dc.date.accessioned2019-02-11T13:34:02Z
dc.date.available2019-02-11T13:34:02Z
dc.date.issued2010en_US
dc.departmentDepartment of Managementen_US
dc.description.abstractThis paper studies spare part transshipments between two service part facilities whose demands are correlated. Transshipments are used to reduce severity of part stock outs. Facilities are run by an inventory manager (IM) who minimizes replenishment, transshipment, and inventory costs. We show that the optimal transshipment policy is an inventory hold-back type; if the part inventory at a facility is less than or equal to its hold-back level, a transshipment request made for that part by a stocked out retailer is rejected. The hold-back levels increase toward the next replenishment of partsThis implies that transshipment requests are initially accepted until a critical time and afterwards they are rejected. A heuristic is designed using this critical time as the single decision variable. It performs within 0.7-1.8% of the optimal cost. Heuristic policies of no inventory sharing and complete sharing, respectively, perform within 3% and 2% of the optimal cost. Since the computation of hold-back levels and implementation of the optimal transshipments, respectively, require limited resources and little IM oversight, we advocate for the use of the optimal transshipment policy.en_US
dc.description.provenanceSubmitted by Mustafa Er (mer@bilkent.edu.tr) on 2019-02-11T13:34:02Z No. of bitstreams: 1 Meeting correlated spare part demands with optimal transshipments.pdf: 2623494 bytes, checksum: 17eee82907a0ed3d7f23e77aaa636769 (MD5)en
dc.description.provenanceMade available in DSpace on 2019-02-11T13:34:02Z (GMT). No. of bitstreams: 1 Meeting correlated spare part demands with optimal transshipments.pdf: 2623494 bytes, checksum: 17eee82907a0ed3d7f23e77aaa636769 (MD5) Previous issue date: 2010en
dc.identifier.doi10.4018/jsds.2010040101en_US
dc.identifier.eissn1947-8577
dc.identifier.issn1947-8569
dc.identifier.urihttp://hdl.handle.net/11693/49262
dc.language.isoEnglishen_US
dc.publisherIGI Globalen_US
dc.relation.isversionofhttp://www.dx.doi.org/10.4018/jsds.2010040101en_US
dc.source.titleInternational Journal of Strategic Decision Sciencesen_US
dc.subjectCorrelated demandsen_US
dc.subjectHeuristicsen_US
dc.subjectHold-backen_US
dc.subjectOptimal transshipmentsen_US
dc.subjectSensitivity studiesen_US
dc.titleMeeting correlated spare part demands with optimal transshipmentsen_US
dc.typeArticleen_US

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