In this paper we present a new distribution concept called ‘floating stocks’, which uses intermodal transport to deploy inventories in a supply chain in advance of retailer demand. Supplying part of the demand directly by road compensates the longer transit time of this transport. First an analytical comparison is made which shows that this concept has advantages in inventories over pure road and intermodal transport. Next a simulation study of a real case is made which quantifies the cost-differences in detail.

floating stock, intermodal transport, inventories, supply chain, virtualwarehousing
hdl.handle.net/1765/1276
Econometric Institute Research Papers
Report / Econometric Institute, Erasmus University Rotterdam
Erasmus School of Economics

Ochtman, G, Dekker, R, van Asperen, E, & Kusters, W. (2004). Floating stocks in FMCG supply chains (No. EI 2004-17). Report / Econometric Institute, Erasmus University Rotterdam. Retrieved from http://hdl.handle.net/1765/1276