Please use this identifier to cite or link to this item: http://repository.kln.ac.lk/handle/123456789/25432
Title: An Effective Lateral Transhipment Model for A Multi-Location Inventory Setting to Minimize
Authors: Kumari, A.G.K.C.
Wijayanayake, A. N.
Niwunhella, D. H. H.
Keywords: inventory management, lateral transhipment, proactive transhipment, retail industry
Issue Date: 2022
Publisher: Department of Industrial Management, Faculty of Science, University of Kelaniya Sri Lanka
Citation: Kumari A.G.K.C.; Wijayanayake A. N.; Niwunhella D. H. H. (2022), An Effective Lateral Transhipment Model for A Multi-Location Inventory Setting to Minimize, International Research Conference on Smart Computing and Systems Engineering (SCSE 2022), Department of Industrial Management, Faculty of Science, University of Kelaniya Sri Lanka. 225-230.
Abstract: Managing inventory levels to ensure on-shelf availability of products is a challenge that retailers face on a daily basis. Even though it is desirable to have additional inventory to ensure the availability of products, it increases the inventory holding cost. Hence, retailers use lateral transhipment as a method to redistribute inventory from a location which has excess inventory to another outlet which faces / will face stockouts. This paper proposes a mathematical model to minimize the total cost through proactive lateral transhipment while reducing the stockouts, significantly. A multi-item, multi-location inventory system was considered, and a cost minimization model was developed based on the tradeoff between the potential gain and the transhipment cost. The model was implemented using Python programming language and validated using a real-world data set from one of the leading supermarket chains. The results from the model have shown that it can reduce the total cost and stockout occurrences significantly.
URI: http://repository.kln.ac.lk/handle/123456789/25432
Appears in Collections:Smart Computing and Systems Engineering - 2022 (SCSE 2022)

Files in This Item:
File Description SizeFormat 
SCSE 2022 34.pdf115.6 kBAdobe PDFView/Open


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.