Solution Algorithm for The Multi-period Inventory Transshipment Problem Considering Rentals and Returns

Abstract

Supply chain management is a large-scale planning under uncertainty. It is significant that building an efficient supply chain under uncertain conditions is a challenge. There are numerous traditional inventory transshipment models targeting only demands but do not include rentals and returns. This study provides the uncertainty between rentals and returns by scenarios using a multi-period stochastic programming model of inventory transshipment problems. The moment matching method was used to reduce the number of scenarios, and the comparative experiment demonstrated the utility of this model.