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International Journal of Science, Strategic Management and Technology

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RETAIL INVENTORY REPLENISHMENT USING THE TRANSPORTATION MODEL: A LITERATURE-BASED ANALYTICAL STUDY WITH RE-COMPUTATION AND CRITICAL AUDIT OF TWO PUBLISHED MODELS

AUTHORS:
Setul Shah
Suhani Jain
Tanmay Baid
Mentor
Prof. Tejaswini Angre
Affiliation
Anil Surendra Modi School of Commerce (ASMSOC), SVKM’s NMIMS, Mumbai, Maharashtra, India
CC BY 4.0 License:
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
Retail replenishment, the decision of how much stock to send from distribution centres and plants to the outlets that sell it, is a natural application of the transportation model of operations research (OR), yet published applications differ widely in rigour and reporting quality. This literature-based analytical study reviews fifteen studies on transportation-type models for retail distribution and examines two applications in depth: a two-source, four-dealer transportation problem for a Malaysian furniture distributor (Tuan Hassan & Masrom, 2022) and an integer programme that plans daily pallet dispatch from a distribution centre to twenty stores of a Brazilian retail chain (Santos Cruz et al., 2016). For each paper we extract the real-life context, objective function, constraints, assumptions, solution method and reported results, and then re-solve the published models independently in Python (SciPy/HiGHS). Both optima reproduce exactly: RM50,605.21 for Paper 1 and 342 pallets for Paper 2. The audit nevertheless finds that Paper 1's headline saving of 78.91% rests on a baseline its data do not produce (50.7% on its own stated rule, 8.7% against its North-West Corner plan), and that its reduced-cost example confuses a basic variable's cost range with a reduced cost. Paper 2's text reports 427 pallets dispatched where its own tables give 342, and its full-load constraint makes three of the twenty stores impossible to serve. Extending the models, we find that each extra unit of 5-ton lorry capacity saves RM3.12, that under ±20% lane-cost variation the fixed Paper 1 plan loses 2.2% on average against re-optimisation and changes in 63% of draws, and that allowing partial loads in Paper 2 serves every store while still dispatching 349 pallets. A hypothetical store-to-store example shows that lateral transfers cut total cost by 44% and that a minimum-lot rule costs 0.6% when modelled but 18% when imposed after optimisation. We conclude with reporting, validation and modelling recommendations for retail replenishment studies.

Keywords: transportation problem; linear programming; integer programming; retail replenishment; distribution planning; sensitivity analysis; operations research
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Shah, S., Jain, S. & Baid, T. (2026). Retail Inventory Replenishment Using the Transportation Model: A Literature-Based Analytical Study with Re-Computation and Critical Audit of Two Published Models. International Journal of Science, Strategic Management and Technology, 02(10), 1-9. https://doi.org/10.55041/ijsmt.v2i10.051

Shah, Setul, et al.. "Retail Inventory Replenishment Using the Transportation Model: A Literature-Based Analytical Study with Re-Computation and Critical Audit of Two Published Models." International Journal of Science, Strategic Management and Technology, vol. 02, no. 10, 2026, pp. 1-9. doi:https://doi.org/10.55041/ijsmt.v2i10.051.

Shah, Setul,Suhani Jain, and Tanmay Baid. "Retail Inventory Replenishment Using the Transportation Model: A Literature-Based Analytical Study with Re-Computation and Critical Audit of Two Published Models." International Journal of Science, Strategic Management and Technology 02, no. 10 (2026): 1-9. https://doi.org/https://doi.org/10.55041/ijsmt.v2i10.051.

References
Brandimarte, P., Craparotta, G., & Marocco, E. (2024). Inventory reallocation in a fashion retail network: A matheuristic approach. European Journal of Operational Research, 317(2), 603–615. https://doi.org/10.1016/j.ejor.2024.04.016

Campbell, A. M., & Savelsbergh, M. W. P. (2004). Delivery volume optimization.

Transportation Science, 38(2), 210–223. https://doi.org/10.1287/trsc.1030.0042

Cárdenas-Escobar, N., Moreira-Gómez, E., & García-Bustos, S. (2021). Modelo de transporte para el reabastecimiento de inventario en una red de tiendas retail [Transportation model for inventory replenishment in a retail store network]. In Proceedings of the 19th LACCEI International Multi-Conference for Engineering, Education, and Technology. LACCEI. https://doi.org/10.18687/LACCEI2021.1.1.257

Caro, F., & Gallien, J. (2010). Inventory management of a fast-fashion retail network.

Operations Research, 58(2), 257–273. https://doi.org/10.1287/opre.1090.0698

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Academic Journal of Interdisciplinary Studies, 4(2 S1), 42–. https://doi.org/10.5901/ajis.2015.v4n2s1p42

Chan, L. M. A., Federgruen, A., & Simchi-Levi, D. (1998). Probabilistic analyses and practical algorithms for inventory-routing models. Operations Research, 46(1), 96–

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Coelho, L. C., Cordeau, J.-F., & Laporte, G. (2014). Thirty years of inventory routing.

Transportation Science, 48(1), 1–19. https://doi.org/10.1287/trsc.2013.0472
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This article has undergone plagiarism screening and double-blind peer review. Editorial policies have been followed. Authors retain copyright under CC BY-NC 4.0 license. The research complies with ethical standards and institutional guidelines.
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