Service Level within an Integrated Model for Warehouse and Inventory Planning

The aim of this paper is to assess the service levels from different point of views by modeling the inventory and warehouse variables. For this reason a main model has been formed and this model has been solved by dividing into inventory sub-model and warehouse sub-model. For the sake of effective implementation of ‘order-picking ‘, the warehouse has been divided into two different areas. These areas are; forward area and reserve area. A predictive approach has been embraced for solvation of the model. A real implementation has been realized in a company acting in the healthcare sector. Because of the nature of the implemented healthcare sector, no limitation has been made for service level. An optimum service level definition approach has been preferred with regard to ‘costing’. When it is considered from this point of view, the model is a kind of ‘full cost model’. The assessments of numerical results has been made according to different service levels. Not only ‘cost effectiveness’ but other factors also taken into consideration for the assessment of the results.