A Closed-Form Approximation for Serial Inventory Systems and Its Application to System Design
Manufacturing & Service Operations Management
Safety Stock Positioning in Supply Chains with Stochastic Lead Times
Manufacturing & Service Operations Management
Achieving a Long-Term Service Target with Periodic Demand Signals: A Newsvendor Framework
Manufacturing & Service Operations Management
Robust Optimization Made Easy with ROME
Operations Research
Fill rate of single-stage general periodic review inventory systems
Operations Research Letters
Proceedings of the Winter Simulation Conference
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We analyze the problem of minimizing average inventory costs subject to fill-rate type of service-level constraints in serial and assembly production/distribution systems. We propose optimal and heuristic procedures to solve this problem. Our model and solution procedures can be used to manage the fill rate or fill rate within a "time window" service measures. We also relate our service-constrained model to the traditional model with back-order costs and show that it is possible to prespecify backorder cost rates to achieve desired service levels. We explore the inventory cost impact of such a practice, and we find that the cost penalty can be very high.