Journal ArticleDOI
A comparison between the order and the volume fill rate for a base-stock inventory control system under a compound renewal demand process
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TLDR
This work considers a continuous review, base-stock policy, where replenishment orders have a constant lead time and unfilled demands are backordered, and develops exact mathematical expressions for the two fill-rate measures when demand follows a compound renewal process.Abstract:
The order fill rate (OFR) is sometimes suggested as an alternative to the volume fill rate (VFR) (most often just denoted fill rate) as a performance measure for inventory control systems. We consider a continuous review, base-stock policy, where replenishment orders have a constant lead time and unfilled demands are backordered. For this policy, we develop exact mathematical expressions for the two fill-rate measures when demand follows a compound renewal process. We also elaborate on when the OFR can be interpreted as the (extended) ready rate. For the case when customer orders are generated by a negative binomial distribution, we show that it is the size of the shape parameter of this distribution that determines the relative magnitude of the two fill rates. In particular, we show that when customer orders are generated by a geometric distribution, the OFR and the VFR are equal.read more
Citations
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Journal ArticleDOI
On the risk-averse optimization of service level in a supply chain under disruption risks
TL;DR: The findings indicate that the best-case order fulfillment rate shows a higher service performance than the worst-case demand fulfillment rate and that worst- case service level is in opposition to cost.
Journal ArticleDOI
An integrated vendor–buyer model with stock-dependent demand
TL;DR: In this article, an integrated vendor-buyer model for a two-stage supply chain is developed, where the vendor produces the product and delivers it in a number of equal-sized batches to the buyer.
Journal ArticleDOI
Analysis of order-up-to-level inventory systems with compound Poisson demand
TL;DR: In this paper, a single echelon single item inventory system where the demand and the lead time are stochastic is modeled as a compound Poisson process and the stock is controlled according to a continuous time order-up-to-level policy.
Journal ArticleDOI
Determining order-up-to levels under periodic review for compound binomial (intermittent) demand
TL;DR: In an extensive numerical study using Royal Air Force (RAF) data, it is shown that the proposed method is much better than existing methods at approximating target service levels and also improves inventory-service efficiency.
Book ChapterDOI
Concepts and Definitions
TL;DR: This work proposes a framework to classify the structure and relevant elements of an inventory system within a static environment and defines how to describe the state of such a system in terms of the relevant characteristics.
References
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Book
Inventory management and production planning and scheduling
TL;DR: In this paper, the authors present a framework for inventory management and production planning and scheduling with a focus on the most important (Class A) and routine (Class C) items.
Book
Foundations of Inventory Management
TL;DR: In this article, one item with a constant demand rate and time-varying demands is described. But, the model is based on a single item with constant lead times.
Journal ArticleDOI
Poisson Arrivals See Time Averages
TL;DR: This paper presents a proof of this result under one basic assumption: the process being observed cannot anticipate the future jumps of the Poisson process.