The impact of data collection on fill rate performance in the (R, s, Q) inventory model

The impact of data collection on fill rate performance in the (R, s, Q) inventory model

0.00 Avg rating0 Votes
Article ID: iaor2000653
Country: United Kingdom
Volume: 50
Issue: 1
Start Page Number: 75
End Page Number: 84
Publication Date: Jan 1999
Journal: Journal of the Operational Research Society
Authors: , ,
Abstract:

In this paper we consider the determination of the reorder point s in an (R, s, Q) inventory model subject to a fill rate service level constraint. We assume that the underlying demand process is a compound renewal process. We then derive an approximation method to compute the reorder level such that a target service level is achieved. Restrictions on the input parameters are given, within which this method is applicable. Moreover, we will investigate the effects on the fill rate performance in case the underlying demand process is indeed a compound renewal process, while the demand process is modelled as a discrete-time demand process. That is, the time axis is divided in time units (for example, days) and demands per time unit are independent and identically distributed random variables. It will be shown that smooth and erratic behaviour of the inter-arrival times have different impacts on the performance of the fill rate when demand is modelled as a discrete-time process and in case the underlying demand process is a compound renewal process.

Reviews

Required fields are marked *. Your email address will not be published.