A Comparison Study of Stochastic- and Guaranteed- Service Approaches on Safety Stock Optimization for Multi Serial Systems

2017 3rd International Conference on Environmental Science and Material Application

生态环境科学;材料科学

Li, Peng^1 ; Wu, Di^1

Faculty of Economics and Management, Xian University of Technology, Xian

710048, China^1

关键词: Computation time;    Continuous review;    Guaranteed service;    Inventory policies;    Inventory problem;    Inventory systems;    Multi-echelon inventory;    Operating flexibility;   

Others  :  https://iopscience.iop.org/article/10.1088/1755-1315/108/4/042070/pdf
DOI  :  10.1088/1755-1315/108/4/042070

来源: IOP

【 摘 要 】

Two competing approaches have been developed over the years for multi-echelon inventory system optimization, stochastic-service approach (SSA) and guaranteed-service approach (GSA). Although they solve the same inventory policy optimization problem in their core, they make different assumptions with regard to the role of safety stock. This paper provides a detailed comparison of the two approaches by considering operating flexibility costs in the optimization of (R, Q) policies for a continuous review serial inventory system. The results indicate the GSA model is more efficiency in solving the complicated inventory problem in terms of the computation time, and the cost difference of the two approaches is quite small.