Main Article Content
The objectives of this research are to study the lateral transhipment of multiple warehouses and multiple retailers distribution system and to analyse the effects of related factors composing of demand dispersion and filling rate. The developed model is simulated by varying the demands at each location and the filling rate of demands at each location to observe the expected number of stockout in the system. The ten replications of each scenario are simulated and the results show that the total number of item’s stockout increases when demand dispersion is high. Retailer with the lowest demand in a distribution results in the highest number of units’ stockout. By varying the filling rate, the distribution with low dispersion demand among retailers trends to has lowest number of units stockout.
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