An integrated guaranteed- and stochastic-service approach to inventory optimization in supply chains |
| |
Authors: | Steffen T. Klosterhalfen Daniel Dittmar Stefan Minner |
| |
Affiliation: | 1. Business School, University of Mannheim, 68131 Mannheim, Germany;2. Schumpeter School of Business and Economics, University of Wuppertal, 42097 Wuppertal, Germany;3. TUM School of Management, Technische Universität München, 80333 Munich, Germany |
| |
Abstract: | Multi-echelon inventory optimization literature distinguishes stochastic- (SS) and guaranteed-service (GS) approaches as mutually exclusive frameworks. While the GS approach considers flexibility measures at the stages to deal with stockouts, the SS approach only relies on safety stock. Within a supply chain, flexibility levels might differ between stages rendering them appropriate candidates for one approach or the other. The existing approaches, however, require the selection of a single framework for the entire supply chain instead of a stage-wise choice. We develop an integrated hybrid-service (HS) approach which endogenously determines the overall cost-optimal approach for each stage and computes the required inventory levels. We present a dynamic programming optimization algorithm for serial supply chains that partitions the entire system into subchains of different types. From a numerical study we find that, besides implicitly choosing the better of the two pure frameworks, whose cost differences can be considerable, the HS approach enables additional pipeline and on-hand stock cost savings. We further identify drivers for the preferability of the HS approach. |
| |
Keywords: | Inventory Multi-echelon Guaranteed service Stochastic service Partitioning |
本文献已被 ScienceDirect 等数据库收录! |
|