Transshipment and Its Impact on Supply Chain Members' Performance

Authors:
Jun Zhang
Affiliations:
A. B. Freeman School of Business, Tulane University, New Orleans, Louisiana 70118
Venue:
Management Science
Year:
2005

Citing 3
Cited 8

On the effect of demand randomness on inventories and costs

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Selling to the Newsvendor: An Analysis of Price-Only Contracts

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Who Benefits from Transshipment? Exogenous vs. Endogenous Wholesale Prices

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Transshipment of Inventories Among Retailers: Myopic vs. Farsighted Stability

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Customer-Driven vs. Retailer-Driven Search: Channel Performance and Implications

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Using Scheduled Ordering to Improve the Performance of Distribution Supply Chains

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Centralizing Inventory in Supply Chains by Using Shapley Value to Allocate the Profits

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Incentives for Transshipment in a Supply Chain with Decentralized Retailers

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TECHNICAL NOTE---Decentralized Inventory Sharing with Asymmetric Information

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Vertical collaboration in the semiconductor industry: A decision framework for supply chain relationships

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Comparative Statics Analysis of Multiproduct Newsvendor Networks Under Responsive Pricing

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Abstract

This note extends some of the key results of Dong and Rudi (2004) to general demand distributions. This generalization is achieved in two steps. First, we build on the analysis of Dong and Rudi to demonstrate that an inventory problem with transshipment is equivalent to a newsvendor problem with an adjusted demand. Then, we study the impact of transshipment by comparing the adjusted demand with the original demand. In addition to extending the results in the existing literature, this note presents a novel approach for analyzing the impact of risk pooling.