Inventory sharing based on supplier-led inventory transshipment

Abstract

This paper proposes a new transshipment mode dominated by suppliers to solve the problem that retailers cannot negotiate transshipment in a competitive market. Through the analysis of the best operation mode and decision-making of decentralized and centralized, this paper summarizes a new transshipment method that the supplier assists the retailer in transshipment, which makes up for the defects in the implementation process of inventory transshipment, and studies the implementation method and price reset through model design. The research shows that the supplier-led inventory transshipment has a significant advantage over the traditional retailer assisted transshipment. By establishing a two-way transaction mechanism between the supplier and the retailer, the supplier can help the retailer replenish and reduce the inventory, reduce the inventory cost, and realize the inventory sharing among the supply chain members. Suppliers actively participate in the inventory transshipment between retailers, change the traditional pricing mechanism, and adopt the transshipment and pricing methods closely related to the retailer's inventory to help enterprise managers manage inventory more scientifically and efficiently and provide correct procedures and theoretical guidance for realizing inventory sharing and optimizing resource allocation.