One supplier-2 retailers inventory system with supply disruptions and transshipments problem, by Elva Fitriani
June 7, 2013
In this master thesis project, we investigate an inventory system consists of 1 supplier and 2 retailers that use a base-stock policy. The supply process at retailer 1 is always available but the supply process at retailer 2 might be disrupted. If necessary, transshipments (complete pooling policy) can be conducted from retailer 1 to retailer 2. The objective is to find an optimal base-stock level for each retailer that minimizes system wide holding, backorder and transshipments costs. Some numerical experiments are conducted in order to get insights about the sensitivity of each parameter and how the system benefits from transshipments.