Dynamic shipments of inventories in shared warehouse and transportation networks

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6 Citations (Scopus)

Abstract

In shared warehouse and transportation networks, dynamic shipments of inventories are carried out based on up-to-date inventory information. This paper studies the effect of network structures on optimal decision-making. We propose a discrete time modeling framework with stochastic demand, capturing a wide variety of network structures. Using Markov decision processes, we obtain optimal order and dynamic shipment decisions for small networks. We compare optimal solutions of different four-node network structures. Results indicate product characteristics significantly influence the effectiveness of network structures. Surprisingly, two-echelon networks are occasionally costlier than any other network. Moreover, dynamic shipments yield considerable gains over static shipments.

Original languageEnglish
Pages (from-to)240-257
Number of pages18
JournalTransportation Research Part E: Logistics and Transportation Review
Volume118
DOIs
Publication statusPublished - Oct-2018

Keywords

  • Shared warehouse and transportation network
  • Dynamic shipments
  • Network comparisons
  • Inventory
  • Markov decision process
  • VENDOR-MANAGED INVENTORY
  • DISASTER RELIEF
  • DEMAND CLASSES
  • MODEL
  • POLICY

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