Supply Chain Financial Transshipment Strategy When Customers Switching

Abstract

With the advent of information technology, retailers have easy access to forecast updates to adjust inventory as the selling season approaches. Rather than giving a second ordering chance, this paper takes lateral transshipment as an alternative, and investigates the transshipment policies in a supplier with two independent asymmetric retailers with a single selling season under both independent and competitive market scenarios. The results show that in the presence of the capital-constrained retailer’s default risk, the capital sufficient retailer is not always preferring to transship out. In the numerical analysis, we find the transshipment policies under competitive scenario are stricter than those under independent scenario.