A multi-location inventory model for service parts with lateral transshipment and waiting time constraints

The trade-off between service cost and service level had become a core problem in the field of inventory management. A multi-item multi-location inventory model was formed for service parts with waiting time constraints. In the inventory system, the continuous-review policy was used. The goal of the paper was to look for an optimal stock for each local warehouse under the target service which was presented by an aggregate mean waiting time constraints per local warehouse. Steps of the efficient heuristics were given at the end of this paper. The model is of great meaning to improve the service as well as to decrease the cost for service parts.