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Since it affects the performance of whole supply chain significantly, definition of correct inventory control policy in a supply chain is critical. Recent technological development enabled real time visibility of a supply network by horizontal integration of each node in a supply network. By this opportunity, inventory sharing among stocking locati...
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... optimal si, Si levels obtained by the OptQuest tool based on the pre-defined policies P1-P5 are summarized in Table 1 and Table 3. The output results for Table 1 are given by Table 2. Once again, Table 2 shows total cost and fill rate results based on optimal Table 1 results. Table 3 shows, the frequency of lateral transshipments took place among the stocking locations at the Table 1 values, optimal levels of si, Si found by OptQuest. Table 4 illustrates the frequency of transportation taking place from the main ...Context 2
... optimal si, Si levels obtained by the OptQuest tool based on the pre-defined policies P1-P5 are summarized in Table 1 and Table 3. The output results for Table 1 are given by Table 2. Once again, Table 2 shows total cost and fill rate results based on optimal Table 1 results. Table 3 shows, the frequency of lateral transshipments took place among the stocking locations at the Table 1 values, optimal levels of si, Si found by OptQuest. ...Context 3
... output results for Table 1 are given by Table 2. Once again, Table 2 shows total cost and fill rate results based on optimal Table 1 results. Table 3 shows, the frequency of lateral transshipments took place among the stocking locations at the Table 1 values, optimal levels of si, Si found by OptQuest. Table 4 illustrates the frequency of transportation taking place from the main depot to the stocking locations in the scenarios of P1-P4 at the Table 1 values, the optimal levels of si, Si found by OptQuest. ...Context 4
... 3 shows, the frequency of lateral transshipments took place among the stocking locations at the Table 1 values, optimal levels of si, Si found by OptQuest. Table 4 illustrates the frequency of transportation taking place from the main depot to the stocking locations in the scenarios of P1-P4 at the Table 1 values, the optimal levels of si, Si found by OptQuest. Table 5 illustrates the total transportation and holding costs based on lateral transshipment policies. ...Context 5
... 5 illustrates the total transportation and holding costs based on lateral transshipment policies. In Table 1, we observe optimal si, Si levels and total cost (TC) values in columns 1-7 in order. We also illustrate the obtained fill rate at the last column. ...Context 6
... also illustrate the obtained fill rate at the last column. The findings from Tables 1-5 are summarized below: ...Context 7
... By Table 1, it is noted that when there is any lateral transshipment policy in the network, stocking location 2 carries lower inventory (s, S levels) than the other stocking locations. This is probably due to that the second stocking location is the furthest location to the main depot. ...Similar publications
The discovery through computational modeling and simulation has become the third pillar of science, alongside theory and experimentation. As computational power increases, simulation has gained in importance and has become a major research area, where highly parallel computation is utilized. In this dissertation, we have performed the simulation by...
Citations
... Also, OptQuest search engine is used to show the GA performance. OptQuest optimization tool is a heuristic based optimization tool integrates meta-heuristics from tabu search, neural networks, and scatter search into a single search heuristic (Ekren & Arslan, 2020;Kleijnen & Wan, 2007). In stochastic processes, we can get expected results, not exact results. ...
Uncertainty and variability in demand and supply processes make it difficult for companies to make inventory management decisions. In this study, a model is developed that will provide the maximum service level of a pharmaceutical warehouse under the budget constraint, taking into account stochastic demand. Due to stochastic demand, the chance constraint programming approach is used to achieve the desired service level at different levels. In this study, the problem of a pharmaceutical warehouse that supplies medicines to pharmacies and hospitals is considered as a real-world problem. The model is designed as a dynamic programming model based on periods. Since there are thousands of drugs in the pharmaceutical warehouse, as the number of products increases, it becomes difficult to find the appropriate solution in an acceptable time. The model is first solved as a mixed integer linear programming model in Lingo. A genetic algorithm (GA) approach is then proposed for large-scale problems. The simulation optimization method also applied to the problem and compared with the optimization method and GA. The GA approach yields better results in the shortest time as the number of periods increases. The developed integrated model demonstrated a numerical example in a pharmaceutical warehouse and was solved using three different approaches. This study is of great importance in terms of providing results that will enable managers to decide the amount of items they should keep in their warehouses by using their budgets in the most efficient way. Nine different scenarios have been derived with various chance constraint risk factors and budget values. Scenario analysis has revealed that the budget has a significant impact on the results at a 95% confidence level. If a pharmaceutical warehouse increases its budget by 10%, it can reduce its total annual inventory carrying costs by 70%.
... The volume that the P-P network can manage is subject to the vehicle size and the fleet, which decides the number of delivery points that can be served at any given time. P-P network concepts usually consider location problems: finding a facility closer to the customer base that minimizes customers' cost for ordering and waiting, and routing problems: delivering consignments to customers using an optimal route that reduces the total cost to the company (20). ...
This study attempts to identify urban air logistics (UAL) operational concepts by synthesizing the urban freight transport (UFT) network configurations and urban air mobility (UAM) characteristics. UAL is gaining popularity as a quick and safe mode that has the potential to address several logistics challenges. This study has reviewed scientific papers identified using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework to understand the features of existing UFT distribution networks, unmanned aerial systems (UAS), and UAM. The cross analysis considered UFT features such as the parcel’s weight, delivery type (time sensitivity, customer-to-customer, business-to-consumer, or business-to-business), and UFT distribution network types and compared them against the features of UAS such as maximum take-off weight, range, and infrastructure requirements (drone ports). The analysis identified three types of UAL operational concepts: door-to-door direct (D2DD), hybrid, and multimodal. Lightweight deliveries can be operated using D2DD and hybrid through point-to-point (P-P) and extended P-P network concepts. The hybrid concept uses an intermediate drop-off location to deliver goods. Hub-and-spoke (H-S), extended H-S, and trunk line with collecting/distribution network designs can be used for heavyweight cargo operations. D2DD versus hybrid/multimodal concepts were compared based on six thematic clusters (societal implications, safety and security, ethics, environmental issues, public acceptance, and urban planning and infrastructure). This study identified that technological development and innovation could reduce social implications and ethical challenges. Furthermore, public willingness and economic feasibility will determine the success of the operational concepts. The identified UAL operational concepts, network designs, and challenges will help to conduct further research in this subject area.
... For example, if a periodic review policy is followed, a retail and wholesale cereal merchant may take end month or two weeks count of business stockpiles. Regular inventory assessments allow a business owner or management to focus on other parts of the business rather than counting inventory (Ekren, & Arslan, 2020). ...
... Order placement policies that consider inventory position while making order decisions or determining order size are referred to as inventory position-based policies. Those policies, on the other hand, that are not determined by the Cereal retail and wholesale traders' inventory status are referred to as non-inventory position-based policies (Ekren, & Arslan, 2020). The inventory position of a Cereal retailer or wholesaler is defined as the total of current inventory plus future orders minus backorders. ...
Purpose: The cereal supply chain within the wholesale and retail trade has been recognized to be below the market demand expectations. The cereals supply chain in Kenya has been dealing with serious issues of poor supplier management for a long time, with instances of malpractice reported, owing to distrust and commitment in the relationship, which has influenced the performance of cereal businesses. With this in focus, this research study was conducted to analyze the Influence of Strategic supply chain management Practices on Performance of Cereal businesses in Dagahaley camp market, Kenya. Methodology: A descriptive research design was adopted to assist achieve the study's objectives. The study sample size was 111 registered traders engaged in Distribution, retail and wholesale cereals trade from the Dagahaley market. A self-administered questionnaire was used to collect primary data. Data was analyzed using Statistical Package for Social Sciences (SPSS) version 20. Textual analysis was used to analyze qualitative data, while quantitative data was analyzed using descriptive statistics. Cronbach alpha test with a coefficient of 0.7 was used to ascertain and test the reliability of the data collection instrument. Results: The results indicated that Supply chain structure, Inventory control policy, and environment uncertainty had a positive and statistically significant effect on performance of cereals supply chain in Dagahaley market, directly affecting the performance of the cereals Businesses in Dagahaley market. Unique Contribution to Theory, Practice and Policy: The study therefore recommends that cereal businesses should continually implement the inventory control policies established in Dagahaley Market in order to cushion against excess/stock outs.
... Notesince some of the articles use more than one algorithm or exact model and heuristic/ metaheuristic approach some articles are considered more than one time in table 3. (Ekren & Arslan, 2020) One echelon, three stocking location system (Jin & Agirbas, 2013) Multi-location system with slow moving perishable (medical) ...
Proper inventory management is known to be one of the major challenges in the retail industry. Maintaining a sufficient level of inventory while reducing the total inventory cost results in increasing customer satisfaction and increasing profitability by reducing the overall cost in the retail industry. Lateral transhipment is one of the most effective ways to achieve both objectives. Lateral transhipment is rotating or sharing of stocks among locations in the same echelon. Due to the effectiveness of lateral transhipment in better managing inventory, it has been studied widely in literature. This paper aims to provide a comprehensive review of literature on different lateral transhipment inventory models and solution procedures proposed. The objective is to analyse and identify the research gap for future research and to identify solution approaches used in existing literature for lateral transhipment problems so that the potential research paths can be explored to improve the inventory management in the retail industry. Even though there are reviews conducted for lateral transhipment, to the best of our knowledge most of them do not focus on the solution approaches used. Hence, this paper focuses on the model setting and solution approaches used in the literature. The results of the literature review have revealed that less attention has been given to proactive and hybrid transhipment approaches. Also, the high number of constraints used commonly in lateral transhipment literature can be considered as a restriction in generalising the solutions proposed. It was also concluded that when the number of retailers and items in the considered inventory model increases, approximation techniques were mostly used in literature rather than exact algorithms. Developing complex proactive or hybrid models for multiple item transhipment among multiple retailers or warehouses while considering the allocation of items to vehicles is a future research area to be explored. Also, it was discovered that all the lateral transhipment problems in literature are aligned with economic objectives. Hence, considering the environmental objectives like green approaches is a challenge for future research. Keywords: Inventory Management, Lateral Transhipment, Retail Industry, Solution Approaches
... Ghoreishi et al. [13] framed an EOQ model under inflation to determine the pricing and ordering strategy of deteriorating items under customer returns. Similarly, many relevant research work has been done on EOQ model considering different situations [14][15][16][17]. Deterioration refers to decay, evaporation, spoilage, decay, and loss of utility of the product. ...
This paper presents an EOQ model where demand is dependent upon time and selling price. In the proposed model of inventory, the retailer allows its unsatisfied customers to return their product whereas the manufacturer offers a full trade credit policy to the retailer. To make our model realistic, we have assumed that the product returned can be resold with the same selling price. Number of returns is a function of demand. In this proposed inventory model considering deterioration, the retailer does not fully reimburse its customers for the returned product. The primary purpose of this inventory model is to determine the optimal selling price, optimal order quantity, and optimal replenishment cycle length in order to maximize the retailer’s total profit earned per unit time. A numerical example is also presented and a sensitivity analysis is carried to highlight the findings of the suggested inventory model.
... IRP has also been analyzed and investigated by examining various distribution systems in order to solve connected issues. Inventory sharing of lateral transshipment concerns was the subject of Ekren and Arslan (2019) [8], who utilized advanced technologies such as real-time visibility of a supply network through horizontal integration of each node. With the use of these technologies, inventory sharing between stocking locations can be made more cost effective. ...
The study focuses on intercompany inventory share policies between e-groceries. Companies are attempting to adapt to the Internet of Things environment considering, the increased amount of e-commerce throughout the world, as well as the effect of the COVID-19 pandemic. The goal of the study is to create a strong bond between companies by taking advantage of today's technology and helps in the reduction of capital risk. These relationships may also lead to greater market share, reduced inventory, enhanced delivery services, higher quality, and faster product development cycles with the help of inventory visibility. This research studies two inventory sharing strategies among e-grocers to improve the supply network's efficiency and responsiveness. The policies considered in this study include share policies based on expiration dates and share policies based on distance - inventory. We use a simulation modeling technique to represent such policies. Besides, in an effort to compare how lateral inventory share implementation affects the system performance, non-inventory sharing policy has been modeled and these three policies were compared. The goal of this study is to determine the best s, S inventory management levels in e-groceries under those rules. Here, s and S represent, re-order and order-up-to levels for replenishment of products. We are motivated to do this study to decrease food waste in such a food network since management of perishable food products is important owing to their perishable feature. Distance, average freshness, average inventory, and waste product numbers were compared in this project based on the lowest inventory number in line with three main policies. The opt quest tool was used in the arena to find the results. Consequently, company owners should choose Expiration Date policy as it has advantages such as total number of waste products and average inventory level.
... Lee et al. [20] propose a lateral transshipment policy called SLA, in which the service level is taken into account in order to decide the amount of lateral transshipment. Ekren and Arslan [21] apply inventory share policies by transshipping the products between stocking locations. They consider (s, S) inventory control policy with three depots. ...
... According to the results, any lateral inventory share policy produces better total network costs than non-lateral inventory share policy. This also echoes the findings of previous works of [21], [27], [36,37]. This is also true under different lost sale per product cost (LSC) scenario. ...
In this paper, we study inventory share policies in an omni-channel supply network, to contribute to the circular economy (CE) concept. Lateral inventory share implementation provides flexibility and profitability in the supply chain by allowing inventory share between the same echelon locations in a network. Total holding costs and transportation costs can be reduced by lateral inventory share applications, which also contribute to decreased material usage for production over time, as well as reduced CO2 emission released by transportation. Technological and Internet of Things (IoT) developments make it possible for companies to share their real-time information with each other for uninterrupted marketing experiences. With such a connected network, companies aim to increase their profitability and responsiveness to their customers. We explore a well-designed inventory share policy towards the CE concept under an (s, S) inventory control policy. We simulate several pre-defined share designs by Arena 16.0 commercial software and compare their performances in terms of cost, responsiveness, transportation frequency, inventory held, etc. The results show that, by the implementation of a well-designed lateral inventory share policy, an omni-channel network can benefit from decreased holding cost and transportation cost, contributing to the CE concept.
... Ekren and Örnek [31,32] examine (s, S) inventory control problems by using simulation optimization procedures. Ekren and Arslan [33] compare different lateral transshipment policies by considering an (s, S) inventory policy to minimize cost. They propose that models with lateral transshipment policy produce better results than models without lateral transshipment policy. ...
This paper studies inventory share policies for sustainable omni-channel e-commerce supply network design by seeking for a good integration policy of online and offline retailers so that the overall supply network reduce its cost, environmental negative impacts by the decreased number of shipments from the main depot, and increase its responsiveness. By the recent advancement in information technologies and internet use, e-commerce practice gained popularity also to keep up with the competitive environment. The increased competitive supply chain environment has revealed the business-to-business (B2B) concepts enabling business applications between companies. Strategic alliance is a partnership concept realized between two or more organizations ensuring that stages are managed with consideration of the welfare of the others in the whole network. By considering that there are inventory share policies between stages, we accept the existence of strategic alliance implementation in the network, aiming to increase total network flexibility and profitability as well as sustainability in the network. In the study, we research inventory share policies towards strategic alliance concept to have a network design with a decreased negative effect of demand uncertainty and increased profitability in the network. By inventory share policies, businesses share their current inventories with the others so that transportation cost and CO2 emission caused by traffic intensity is decreased in the network. We propose six inventory share policy combinations and optimize the (s, S) inventory levels under those policies by minimizing total network cost. We utilize the simulation modeling approach for the modeling purpose. We compare the policy results based on the total network cost, the total number of shipments completed from the main warehouse, and total lost sale cost, etc., at the optimal levels and suggest the best policy design.
Objective: This study conducts a comprehensive bibliometric review of the Transshipment Location Problem (TLP) by identifying key authors, countries, journals, and research areas. It also maps the evolution of TLP and explores methodologies and tools used for optimizing logistical and distribution systems. Theoretical Framework: TLP, a variant of the classical transshipment problem, has gained attention for its role in optimizing supply chain networks. It involves both proactive transshipment (planned inventory management) and reactive transshipment (responding to unexpected events or shortages). Method: This study applies a bibliometric analysis methodology using VOSviewer to analyze publications extracted from the Scopus database. The analysis focuses on key bibliometric indicators such as co-authorship, co-citation, and keyword co-occurrence. The dataset comprises 432 selected articles published between 2000 and 2023. Results and Discussion: The review reveals that optimization tools, particularly in transportation and inventory management, are widely applied in TLP studies The United States, China, and Germany are leading contributors to TLP research. Lateral transshipment strategies are increasingly employed to enhance supply chain flexibility. A small group of influential researchers drives the field through collaborations and citations. Research Implications: The review provides valuable insights for future research, highlighting gaps in applying optimization methods in emerging fields like healthcare. It offers a clear view of the geographical and institutional landscape of TLP research and suggests areas for future study, such as sustainability. Originality/Value: This review fills a gap in the literature by systematically mapping TLP research’s evolution and its growing relevance in logistical systems optimization across various industries.
Em um cenário tão competitivo, a gestão de estoques se torna uma ferramenta estratégica no processo de diferenciação, visto que o gerenciamento de ativos é crucial para o sucesso empresarial. Nesse sentido, o uso de software para modelagem e simulação se apresentam como facilitadores na formulação de hipóteses e previsão dos efeitos oriundos das alterações eventualmente realizadas. Assim, o presente estudo tem como objetivo identificar os softwares de simulação mais utilizados para resolução de problemas em estoques. Para isso, o método utilizado é uma revisão sistemática da literatura, a fim de mapear e fortalecer os benefícios empresariais / acadêmicas, para que a ligação entre gestão de estoque e a simulação computacional seja garantida no processo produtivo. Como resultado, os numerosos estudos reforçam que os softwares de simulação mais utilizados na otimização em ambientes de estoque são o Arena (32,5%), FlexSim (10%), VenSim (5%), com modelagens do tipo mista (25%), envolvendo análise multicritério, algoritmos genéricos, assim como, outros softwares de simulação (22,5%). Por fim, o diferencial desta pesquisa é a elaboração de uma agenda de pesquisa, listando as diversas lacunas identificadas para aprofundar os estudos na área, tendo como principal delas a escassez de trabalhos na área.
