The remainder of the paper is organized as follows: In the following
section, we introduce the capacitated transshipment problem
along with the notation used in the paper. Section 3 is devoted
to determining the replenishment quantities incorporating various
allocation rules under limited supplier capacity. The policy for
replenishments and transshipments together with the formulation
is described in Section 4. Section 5 presents the technical details of
SAA. We illustrate the solution technique with a numerical study
and discuss the findings in Section 6. We conclude with final
remarks in Section 7. Technical details are presented in the
appendices.