Abstract
Two different types of transshipments which are called preventive or emergency transshipment, have been studied separately in the inventory distribution problem. The transshipment in inventory distribution system is important to improve customer service and reduce total cost. In this paper the inventory distribution problem using both transshipments is formulated as the stochastic programming problem in which customer demand is defined as random variables. The algorithm using L-shaped method is developed and the numerical experiments show that the proposed algorithm is quite efficient. Finally, the advantage using both of transshipments is shown.
