Application of Transshipment in the Supply Chain Management in Tunisia

Elleuch Fadoi, Semi Boudabbous
International Journal of Finance, Insurance and Risk Management, Volume 11, Issue 4, 81-103, 2021
DOI: 10.35808/ijfirm/271


Purpose: In, our paper, we have studied the problem of lateral transshipment as being a mode of cooperation in between the different retailers which are located near, to improve the supply chain management. Design/Methodology/Approach: First, a simulation-optimization approach based on a metamodel is applied to find the different measures of the initial level of replenishment. Secondly, a series of simulation experiments are performed to find the best transshipment policy, in terms, of maximizing the expected Average Global Profit and minimizing the Average Global Desservice Rate. Findings: The policies tested are no-pooling, complete-pooling, and various partial pooling policies depending on the selection of physical inventory thresholds. The best transshipment policy is partial pooling with such a threshold equal to “Security Stock = 30% of PSiT”. Practical implementation: Partial pooling is a very interesting transshipment policy and should be further addressed in future research.

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