Stochastic Programming Model for Lateral Transshipment Considering Rentals and Returns

Abstract

Supply chain management is a large scale planning under uncertainty. It is significant that building an efficient supply chain under uncertain condition; however, it is difficult. There are many traditional inventory transshipment models targeting only rental, not including return. This study provides the uncertainty between rentals and returns by scenarios with multi-period stochastic programming model of inventory transshipment problems. The moment matching method was used to reduce the amount of the scenarios, and the comparativeexperiment shows the utility of this study model.