Analysis of the Impact of Lateral Stock Transfers in Distribution Network with a Central Warehouse and Two Storage Points
DOI:
https://doi.org/10.30871/jaic.v10i1.11408Keywords:
Lateral Stock Transfers, Distribution Network, Central Warehouse, Two Storage PointsAbstract
Our study, Analysis of the impact of lateral Transfers in a stock distribution system with a central warehouse and two stocking points, aims to analyze the effet of lateral stock transfers between the two stocking points on minimizing the total inventory management cost system, retailers manage their inventories according to the (R,S) policy. This study also examines the service level and the stockout rate resulting from the implementation of lateral stock transfers. Each point i (i=1,2) manages its inventory independently in order to meet the consomer demand yi. Each stocking point has a maximun inventory level Si , when customer demand is less than or equal to the reorder point si , an order of quantity Qi= Si-si is placed with the central warehouse. This quantity is delivered after a known lead time Li. If the delivery lead time is too long, stocking point i may request a lateral transfer of quantity Xji from stocking point j, which has excess inventory, in order to avoid a stockout. The originality of this publication stems from the implementation of a numerical application using MATLAB, which allowed us to conduct this analysis.
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Copyright (c) 2026 Dambo Punga, Mabela Makengo Rostin, Herman MATONDO MANANGA, Muhala Luhepa Blaise, Boono Yaba Benjamin
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