Lateral transshipment for managing excesses and shortages in a multilocation inventory system: a case study of Timex Watches Ltd.
by Pradip K. Bhaumik, Sachin Kataria
International Journal of Services Technology and Management (IJSTM), Vol. 7, No. 5/6, 2006

Abstract: This paper describes a large watch manufacturer in India and a proposed system to reduce its cost and simultaneously improve its service level by planning lateral transshipments. Many authors have studied the multilocation inventory situations, under different demand and cost characteristics, and almost all of them have developed push systems developing optimum or good replenishment/transshipment policies. Yet pull systems may offer simpler and more practical joint replenishment/transshipment policies, particularly when practical considerations as faced by real companies are studied. The process map including the inputs and the outputs for the replenishment system is described, as well as the feedback mechanism to revise the system parameters.

Online publication date: Mon, 13-Nov-2006

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