Publication
Title
Safety stock placement problem in capacitated supply chains
Author
Abstract
Today's highly competitive business environment forces supply chain managers to maintain high service levels while keeping inventory-related costs as low as possible. Therefore, placing the right amount of safety stock at the right places in the supply chain is an important aspect of effective inventory management. This safety stock placement problem, for which some solution strategies have been proposed in the case of uncapacitated supply chains, becomes much more complicated when, in addition to the variability of the demand, capacity constraints also come into play. In this paper we propose a model to locate safety stocks in a capacitated supply chain with the objective of maintaining the required service level. The underlying relationships linking excess capacity, demand variability, and service levels are analysed to gain deeper understanding of the safety stock placement problem in capacitated supply chains. Based on these relationships a solution approach for the problem is proposed and is tested with Monte Carlo simulation
Language
English
Source (journal)
International journal of production research. - London
Publication
London : 2008
ISSN
0020-7543
Volume/pages
46:17(2008), p. 4709-4727
ISI
000257840100004
Full text (Publisher's DOI)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
E-info
Web of Science
Record
Identification
Creation 27.03.2009
Last edited 04.10.2017
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