On the single item fill rate for a finite horizon

Authors:
Jiahua Chen;Dennis K. J. Lin;Douglas J. Thomas
Affiliations:
Department of Statistics and Actuarial Science, University of Waterloo, USA;Smeal College of Business Administration, The Pennsylvania State University, University Park, PA 16802, USA;Smeal College of Business Administration, The Pennsylvania State University, University Park, PA 16802, USA
Venue:
Operations Research Letters
Year:
2003

Citing 2
Cited 2

Consequences of Order Crossover Under Order-Up-To Inventory Policies

Manufacturing & Service Operations Management
Measuring Item Fill-Rate Performance in a Finite Horizon

Manufacturing & Service Operations Management

Achieving a Long-Term Service Target with Periodic Demand Signals: A Newsvendor Framework

Manufacturing & Service Operations Management
Average fill rate and horizon length

Operations Research Letters

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Abstract

We investigate expressions for expected item fill rate in a periodic inventory system. The typical treatment of fill rate found in many operations management texts assumes infinite horizon, independent and stationary demand. For the case when the horizon is finite, we show that the expected value of the actual fill rate is greater than the value given by the infinite horizon expression. The implication of our results is that an inventory manager in a finite horizon situation who uses the infinite horizon expression to set stocking levels will achieve a higher than desired expected fill rate at greater than necessary inventory expense.