Emergency supply flexibility in a two-echelon inventory system with pipeline information

Abstract

We study a two-echelon inventory system with lateral transshipments between locations of the same echelon and emergency direct deliveries from upper echelons. An analytic approach is used to analyze the performance of an aggregated model for a two-echelon distribution network. After showing the model accuracy we compare the results to models which ignore pipeline information and identify significant cost savings. Further, pipeline information influences the optimal mix of flexibility options, i.e., pipeline information increases the fraction of demand satisfied by local warehouses and decreases the fraction of demand satisfied through lateral transshipment and direct deliveries.

Co-Authored with

Dipl.-Wirtsch.-Ing.Arkadi Seidscher (Faculty of Business, Economics and Statistics, University of Vienna)

About the Presenter

Stefan Minner is a Full Professor for Logistics and Supply Chain Management at TUM School of Management, Technische Universität München. He studied Business Administration at the University of Bielefeld and received his doctoral degree from the University of Magdeburg. He was a postdoctoral researcher at the University of Calgary and held positions at the Universities of Paderborn, Mannheim, and Vienna. His primary research interests are logistics network design under uncertainty, supply chain coordination, and inventory management. He currently serves as the Editor-in-Chief of OR Spectrum and is a member of several other editorial boards. Stefan Minner is the president of the International Society for Inventory Research (ISIR), a member of the advisory board of the German Operations Research Society (GOR) and a member of the Research and Development Committee of the European Logistics Association (ELA).

more info on Prof. Dr. Stefan Minner

About the Seminar

The KLU research seminar series is a regular meeting of PhD students, Post-Docs and professors who conduct research in the field of logistics and supply chain management. The research seminar is open to the public and we happily welcome guests.