Affiliation:
1. School of Business and Management, Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong;
2. School of Economics and Business Administration, Chongqing University, Shapingba District, Chongqing 400044, China
Abstract
Transshipment in retailing is a practice where one outlet ships its excess inventory to another outlet with inventory shortages. By balancing inventories, transshipment can reduce waste and increase fill rate at the same time. In “Separation of Perishable Inventories in Offline Retailing Through Transshipment,” Li, Yu, and Du explore the idea of transshipping perishable goods with a fixed finite lifetime in offline grocery retailing. In the offline retailing of perishable goods, customers typically choose the newest items first, which can lead to substantial waste. They show that, in this context, transshipment plays two roles. One is inventory balancing, which is well known in the literature. The other is inventory separation, which is new to the literature. That is, transshipment allows a retailer to put newer inventory in one outlet and older inventory in the other. This makes it easier to sell older inventory and reduces waste as a result.
Publisher
Institute for Operations Research and the Management Sciences (INFORMS)
Subject
Management Science and Operations Research,Computer Science Applications
Cited by
3 articles.
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