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Effective Demand Selection Scheme for Satisfying Target Service Level in a Supply Chain  

Park, Gi-Tae (ERP Team, LG Display)
Kwon, Ick-Hyun (Department of Systems Management Engineering, Inje University)
Publication Information
Journal of the Korea Safety Management & Science / v.11, no.1, 2009 , pp. 205-211 More about this Journal
Abstract
In reality, distribution planning for a supply chain is established using a certain probabilistic distribution estimated by forecasting. However, in general, the demands used for an actual distribution planning are of deterministic value, a single value for each of periods. Because of this reason the final result of a planning has to be a single value for each period. Unfortunately, it is very difficult to estimate a single value due to the inherent uncertainty in the probabilistic distribution of customer demand. The issue addressed in this paper is the selection of single demand value among of the distributed demand estimations for a period to be used in the distribution planning. This paper proposes an efficient demand selection scheme for minimizing total inventory costs while satisfying target service level under the various experimental conditions.
Keywords
Supply Chain; Distribution Planning; Demand Selection; Service Level;
Citations & Related Records
Times Cited By KSCI : 1  (Citation Analysis)
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