In this paper, we address the optimal joint control of inventory and transshipment for a firm that produces in two locations and faces capacity uncertainty. Capacity uncertainty (e.g., due to downtime, quality problems, yield, etc.) is a common feature of many production systems but its effects have not been explored in the context of a firm that has multiple production facilities. We first cha...

T This paper analyzes different pricing strategies in a two-echelon supply chain including one supplier and two retailers. The supplier and the retailers face random yield and random demand, respectively. Moreover, coordination or non-coordination of retailers in receiving the discount is investigated. Game theory is used to model and analyze the problems. The supplier as a leader of Stackelbe...

We investigate a model in which monopoly supplier distributes two types of its product through traditional retailer with wholesale price contract and an online agency contract. Because such eliminates the double marginalization problem, has cost advantage over retailer. Given retailer, we also consider possible request by retailer: retail is not smaller than for obtain following results. An inc...

This paper introduces the Inventory-Routing Problem with Transshipment (IRPT). This problem arises when vehicle routing and inventory decisions must be made simultaneously, which is typically the case in vendor-managed inventory systems. Heuristics and exact algorithms have already been proposed for the Inventory-Routing Problem (IRP), but these algorithms ignore the possibility of performing t...

What is the best distribution strategy to ship materials from a source to multiple destinations on a regular basis? This is a common question confronting logistics planners in many industries. This paper examines this issue in the context of the ocean freight industry. In particular, we tackle the economics of freighting raw materials through a transshipment hub, and propose a method to synchro...

This chapter intends to give an overview of the literature on dynamic lot-sizing models and stochastic transshipment models. These two types of models are used as a basis for developing models with substitution in the following chapters. Section 2.1 contains a classification of models for dynamic lot-sizing / production planning, and selected models. In Sect. 2.2, we give a brief overview of av...

This chapter intends to give an overview of the literature on dynamic lot-sizing models and stochastic transshipment models. These two types of models are used as a basis for developing models with substitution in the following chapters. Section 2.1 contains a classification of models for dynamic lot-sizing / production planning, and selected models. In Sect. 2.2, we give a brief overview of av...

Ongoing globalization causes increasing transportation rates and transshipment volumes at sea ports (Steenken, 2004). Different to container transshipment, the transshipment of finished vehicles has received only minor attention in research yet (Mattfeld and Kopfer, 2003). By means of statistics for major ports of the North-West European coast line the structure and development of vehicle trans...