Pooling through lateral transshipments in service parts systems |
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Authors: | Benhür Sat?r Secil Savasaneril Yasemin Serin |
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Institution: | 1. Department of Industrial Engineering, Çankaya University, 06810 Ankara, Turkey;2. Department of Industrial Engineering, Middle East Technical University, Dumlump?nar Bulvar?, 06800 Ankara, Turkey |
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Abstract: | We study the inventory management problem of a service center operating in a decentralized service parts network. The service centers collaborate through inventory and service pooling, and through sharing information on the inventory status. Upon demand arrival, a service center may request a part from the other center, in which case a payment is made. Under this competitive and collaborative environment, we first characterize the optimal operating policy of an individual service center. Through computational analysis we identify the conditions under which pooling is most beneficial to the service center, and make an assessment of different pooling strategies which are commonly adopted in practice and in the literature. Finally, we analyze the effect of interaction between the centers on the benefit of pooling. |
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Keywords: | Inventory Lateral transshipment Service parts Optimal control of queueing networks |
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