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Application of Two Emergency Transshipment Policies to Improve the Global Performance of Supply Chain Management

Elleuch Fadoi

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. First, a simulation-optimization approach based on a meta-model 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 Des-service Rate. The policies tested are no-pooling, complete-pooling, and various partial pooling policies depending on the selection of physical inventory thresholds. Finally, the best transshipment policy is partial pooling with such a threshold equal to “Security Stock=30% of PSiT”. Partial pooling is a very interesting transshipment policy and should be further addressed in future research.