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Journal ArticleDOI

Fiscal-period-based service level constraints and safety stock requirements†

TLDR
In this paper, the authors deal with service level constraints which are defined over a fiscal period and show that a confusion between a lead-time and fiscal-period perspective can result in substantial financial consequences and is therefore of managerial relevance.
Abstract
SUMMARY This paper deals with service level constraints which are defined over a fiscal period. Fiscal-period-based service level constraints are considerably more complex than their lead-time counterparts and result in significantly different safety stock requirements. Thus, a confusion between a lead-time and fiscal-period perspective can result in substantial financial consequences and is therefore of managerial relevance. Although no generalizations are possible from the limited results presented, further computational experience suggests that the findings reported hold over a wide range of situations.

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Citations
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Journal ArticleDOI

Component Commonality with Service Level Requirements

TL;DR: In this article, the effect of commonality on safety stocks in a simple inventory model was investigated and the results were not all intuitive, while utilizing commonality is beneficial, nothing general can be said about the resulting change in the components' stock levels.
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.
Journal ArticleDOI

Improved strategy for service level-based safety stock determination

TL;DR: It is shown that, when combined with a fixed reorder quantity, the alternative strategy results in lower expected carrying costs for a stationary probability distribution of lead time demand.
Journal ArticleDOI

Occurrence based service-level constraints during a fiscal period

TL;DR: In this article, an occurrence-based service-level constraint, defined over a fiscal period, is introduced, which measures the actual number of stockout episodes and restricts it to a managerially acceptable level.
References
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Book

Decision Systems for Inventory Management and Production Planning

TL;DR: In this article, an in-depth discussion of the major decisions in production planning, scheduling, and inventory management faced by organizations, both private and public, is presented, as well as the latest systems used to make decisions, including Just-in-Time Manufacturing, KANBAN, Distribution Requirements Planning and PUSH Control.
Journal ArticleDOI

Effect of service-levels on order-points or order-levels in inventory models

TL;DR: A survey of the three most common service measures and the mathematical calculations pertaining to each is presented, highlighting the importance of knowing the desired service-level in inventory control.
Journal ArticleDOI

Quantitative Analysis for Business Decisions.

TL;DR: In this paper, Bierman, C. P. Bonini, and W. H. Hausman present the Irwin Series in Quantitative Analysis for Business, edited by Robert B. Fetter.
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