Christian Larsen Computation of order and volume fill rates for a base stock inventory control system with heterogeneous demand to investigate which customer class gets the best service
نویسنده
چکیده
We consider a base stock inventory control system serving two customer classes whose demands are generated by two independent compound renewal processes. We show how to derive order and volume fill rates of each class. Based on assumptions about first order stochastic dominance we prove when one customer class will get the best service. That theoretical result is validated through a series of numerical experiments which also reveal that it is quite robust.
منابع مشابه
The order and volume fill rates in inventory control systems
This paper differentiates between an order (line) fill rate and a volume fill rate and specifies their performance for different inventory control systems. When the focus is on filling complete customer orders rather than total demanded quantity the order fill rate would be the preferred service level measure. The main result shows how the order and volume fill rates are related in magnitude. E...
متن کاملA comparison between the order and the volume fill rate for a base-stock inventory control system under a compound renewal demand process
The order fill rate is less commonly used than the volume fill rate (most often just denoted fill rate) as a performance measure for inventory control systems. However, in settings where the focus is on filling customer orders rather than total quantities, the order fill rate should be the preferred measure. In this paper we consider a continuous review, base-stock policy, where all replenishme...
متن کاملOptimization of two-stage production/inventory systems under order base stock policy with advance demand information
It is important to share demand information among the members in supply chains. In recent years, production and inventory systems with advance demand information (ADI) have been discussed, where advance demand information means the information of demand which the decision maker obtains before the corresponding actual demand arrives. Appropriate production and inventory control using demand info...
متن کاملInventory control in presence of advance demand information and heterogenous demand – Thesis proposal at 1 Sep. 2009
Papers involved 1. Bisheng Du, Christian Larsen. 2008. Base stock policies with degraded service to larger orders. Download: http://www.hha.dk/bs/wp/log/L_2008_07.pdf 2. Bisheng Du, Christian Larsen. 2009. Investigating comparative advantages of advance demand information in presence of heterogeneous demand. (General version) 3. Bisheng Du, Christian Larsen. 2009. Comparing reservation policies...
متن کاملQueueing Inventory System in a Two-level Supply Chain with One-for-One Ordering Policy
Consider a two-level inventory system consisting of one supplier and one retailer. The retailer faces a Poisson demand with a known rate and applies base stock (one-for-one ordering) policy. That is, his inventory position is set to a pre-determined level, so the demand pattern is transferred exactly to the supplier. The supplier has an inventory system and a service unit with exponentially dis...
متن کامل