A Note on Lateral Transshipment under Point-Process Driven Demand
Operations Research Letters
We analyze lateral transshipment for items whose demand is driven by an arbitrary point process. We find conditions under which lateral transshipment stochastically lowers the cost of a system of demand centers. Our main structural result is that transshipment works best for slow-moving items, such as spare-parts, when the demands are driven by non-homogeneous or homogeneous Poisson processes. We also obtain general results that apply when demand is driven by an arbitrary point process.
Paul, Anand, Arda Yenipazarli.
"A Note on Lateral Transshipment under Point-Process Driven Demand."
Operations Research Letters, 41 (2): 159-163.