The single and multi‐item transshipment problem with fixed transshipment costs

摘要: This article deals with supply chain systems in which lateral transshipments are allowed. For a system two retailers facing stochastic demand, we relax the assumption of negligible fixed transshipment costs, thus, extending existing results for single-item case and introducing new model multiple items. The goal is to determine optimal replenishment policies, such that total centralized expected profit both maximized. problem develop optimality conditions, analyze function, identify solution. We extend our analysis items joint has not been investigated previously literature, show how conditions may be extended any number Due complexity involved solving these suggest simple heuristic based on results. Finally, conduct numerical study provides managerial insights solutions obtained various settings demonstrates suggested performs very well. © 2014 Wiley Periodicals, Inc. Naval Research Logistics, 61: 637–664,