Title: Lateral transshipment for managing excesses and shortages in a multilocation inventory system: a case study of Timex Watches Ltd.

Authors: Pradip K. Bhaumik, Sachin Kataria

Addresses: International Management Institute, B-10, Qutab Institutional Area, Tara Crescent, New Delhi 110 016, India. ' Business Systems Group, Timex Watches Limited, B-190, Phase-II, NOIDA 201 305, India

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.

Keywords: lateral transshipment; multilocation inventory; distribution chain; service levels; excess management; shortage management; watch manufacture; Timex Watches Ltd; India; replenishment policy; pull systems; logistics; supply chain management; SCM.

DOI: 10.1504/IJSTM.2006.011293

International Journal of Services Technology and Management, 2006 Vol.7 No.5/6, pp.602 - 614

Published online: 13 Nov 2006 *

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