Effect of Transshipment on Supply Chain Management Performance: Case of Two-retailer System and Mono-echelon

Abstract:

In our paper, we studied the problem of lateral transshipment as a mode of cooperation between retailers located on the same level, to improve supply chain management.

For this, a series of simulation experiments are carried out to estimate the effect of the transshipment application, in terms of maximizing the expected average profit and minimizing the shortage rate and by estimating in our work that demand follows the Poisson law distribution. Partial pooling is a very interesting transshipment policy and should be explored further in future research.