The Effect of Commonality on Safety Stock in a Simple Inventory Model

We examine the effects of component commonality on optimal safety stock levels in a two-product, two-level inventory model. The criterion is to minimize system safety stock subject to a service level constraint. Although our model is specialized, its analysis provides insights not available in other...

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Veröffentlicht in:	Management science 1986-08, Vol.32 (8), p.982-988
Hauptverfasser:	Baker, Kenneth R, Magazine, Michael J, Nuttle, Henry L. W
Format:	Artikel
Sprache:	eng
Schlagworte:	Applied sciences Common property ownership Common stock Effectiveness Exact sciences and technology Forecasting models Inventories inventory Inventory control Inventory control, production control. Distribution inventory/production Management science Mathematical analysis Measurement measures of effectiveness Modeling multi-echelon Multilevel models Operational research and scientific management Operational research. Management science Order quantity production Random variables Rationing Safety stock
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Beschreibung
Zusammenfassung:	We examine the effects of component commonality on optimal safety stock levels in a two-product, two-level inventory model. The criterion is to minimize system safety stock subject to a service level constraint. Although our model is specialized, its analysis provides insights not available in other multilevel inventory models.
ISSN:	0025-1909 1526-5501
DOI:	10.1287/mnsc.32.8.982