Risk pooling has been studied extensively in the operations management literature as the basic driver behind strategies such as transshipment, manufacturing flexibility, component commonality, and drop-shipping. This paper explores the benefit of risk pooling in the context of inventory management using the canonical model first studied in Eppen (1979). Specifically, we consider a single-period...

We integrate production and distribution decisions in a recovery planning model for a disrupted production system to minimize the negative impacts of disruption on its profit and customers' satisfaction. The problem is originally motivated by the real-life case of an explosion disaster occurred in September 2015 in a leading producer of household consumer goods in Iran. Multiple recovery polici...

We consider a capacitated plant location problem with multi-commodity flow on a two-level network including plants and transshipment points. The objective is to locate plants and determine commodities movement while satisfying customers’ demand and minimizing costs. We present a new and effective hybrid method, composed from Lagrangean Relaxation and UB Creating Method to solve the problem. We ...

Configuration and geometry of bracing systems affect the seismic performance of structures significantly. Recently, the current authors have introduced a new configuration for eccentric bracing of structural frames that may be assumed as the combination of inverted Y-type and rotated K-type EBFs. The resulted braced frame is called EBF-DVL, consisting of two vertical links attached together by ...

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Manufacturers and wholesalers are increasingly cost conscious in response to today’s hyper-competitive environment. Lateral transshipment (LT) has been proposed as a viable solution to drive total inventory costs down whilst increasing customer service level. Our study proposes five LT decision rules with a case-based roadmap to guide professional inventory management. Results of this large fas...

The problem of determining a maximum-weight marking in a marked graph is mathematically dual to the transshipment problem of operations research. The special structure of the transshipment problem facilitates efficient implementation of the simplex method of linear programming, for solving such problems. In this paper, we first show that the maximum-weight marking problem possesses as much stru...