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a novel approach to safety stock management in a coordinated supply chain with controllable lead time using present value精品
Research Article
Received 27 January 2015, Revised 1 April 2015, Accepted 11 June 2015 Published online 15 July 2015 in Wiley Online Library
() DOI: 10.1002/asmb.2126
A novel approach to safety stock management in
a coordinated supply chain with controllable
lead time using present value
Marcello Braglia, Davide Castellano*鈥 and Marco Frosolini
This paper considers the management of safety stock in a coordinated single-vendor single-buyer supply chain under continuous
review and Gaussian lead-time demand. The lead time is supposed controllable, and shortages are not allowed. We follow the present
value criterion by considering both inlation and time value of money. Our aim is to present a novel approach to optimizing the
safety stock in such system. Under the conditions considered, the safety stock is typically determined according to the value assigned
to the safety factor, which is thus treated as a parameter of the model, and not as a decision variable. In this paper, we take a
different perspective by putting the order quantity and the safety factor in functional dependence through the adoption of a speciic
parameter. More precisely, we express the service level as a function of the number of admissible stockouts per time unit and the
order quantity. This allows optimizing the safety stock taking into account the constraint on the number of admissible stockouts per
time unit. We present both exact and approximated minimization algorithms. Numerical examples are inally shown to illustrate
the effectiveness of the approximation algorithm, and to investigate the sensitivity of the model with respect to variations in some
fundamental parameters. Copyright 漏 2015 John Wiley Sons, Ltd.
Keywords: present value; JELS; inventory; controllable lead time; approximation; safety stock
1. Introduction
To improve their capabilities, irms tend to become an integral part of the supply chain, rather than acting as individual
entities.
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