Abstract
We apply simulation optimization to determine the optimal design and stock distribution for a single item supply system with a one-for-one replenishment policy. We investigate both the effect of the number of echelons and the degree of resupply flexibility, considering single-echelon and two-echelon systems with either no resupply flexibility, lateral tran- shipments only or both lateral transhipments and emergency deliveries. We show that the implementation of an emergency delivery option allows an augmentation of the frac- tion of customers served by lateral transhipments and that increased resupply flexibility enables increasingly important cost savings.
Original language | Undefined/Unknown |
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Pages (from-to) | 72-85 |
Number of pages | 14 |
Journal | Transportation Research Part E: Logistics and Transportation |
Volume | 45 |
Issue number | 1 |
Publication status | Published - 2009 |