Lateral transshipments are an effective strategy to pool inventories. We present a Semi-Markov decision problem formulation for proactive and reactive transshipments in a multi-location continuous review distribution inventory system with Poisson demand and one-for-one replenishment policy. For...

We consider a periodic review single‐item inventory model under stochastic demand. Every m periods, in the regular order period, fixed order costs are K. In the periods in‐between, the intraperiods, higher fixed order costs of LK$L>K$ apply. The literature on optimal inventory policies under...