Title
Safety stock placement problem in capacitated supply chainsSafety stock placement problem in capacitated supply chains
Author
Faculty/Department
Institute for Transport en Maritime Management (ITMMA)
Research group
ITMMA
Publication type
article
Publication
London,
Subject
Economics
Source (journal)
International journal of production research. - London
Volume/pages
46(2008):17, p. 4709-4727
ISSN
0020-7543
ISI
000257840100004
Carrier
E
Target language
English (eng)
Full text (Publishers DOI)
Affiliation
University of Antwerp
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
E-info
http://www.informaworld.com/smpp/content~db=all~content=a778394788~tab=citation
http://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000257840100004&DestLinkType=RelatedRecords&DestApp=ALL_WOS&UsrCustomerID=ef845e08c439e550330acc77c7d2d848
http://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000257840100004&DestLinkType=FullRecord&DestApp=ALL_WOS&UsrCustomerID=ef845e08c439e550330acc77c7d2d848
http://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000257840100004&DestLinkType=CitingArticles&DestApp=ALL_WOS&UsrCustomerID=ef845e08c439e550330acc77c7d2d848
Handle