Journal of the Korean Operations Research and Management Science Society (한국경영과학회지)

The Korean Operations Research and Management Science Society (한국경영과학회)
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Two-stage Serial Supply Chains under Fill Rate Constraints

2단계 시리얼 시스템의 Fill Rate 만족 방안

  • 권익현 (고려대학교 정보통신기술연구소) ;
  • 김성식 (고려대학교 산업시스템정보공학과)
  • Published : 2006.03.01
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Abstract

In this paper, we investigate the problem of minimizing average inventory costs subject to a fill rate constraint in a two-stage serial inventory model with a normally distributed demand. Fill rate is the fraction of demand that is satisfied immediately from on-hand inventory. We first find the lower bounds of base-stock levels in each node by using the exact base-stock level that satisfies a fill rate in a single node model proposed by Sobel. And then, we extensively analyze the system and show that the cost function is convex. Using such convexity and some other useful properties, we can easily find optimal base-stock levels numerically.

Keywords

References

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