Strategic Safety-Stock Placement in Supply Chains with Capacity Constraints
نویسندگان
چکیده
منابع مشابه
Strategic Safety Stock Placement In Supply Chains
We consider a multi-stage production/distribution supply chain subject to stochastic demand. We formulate an optimization problem to determine where to place decoupling inventories, so-called strategic inventories, across the supply chain so as to minimize inventory holding costs subject to a service constraint for satisfying customer demand. We assume demand is normally distributed. For each s...
متن کاملCorrespondence: Erratum: Optimizing Strategic Safety Stock Placement in Supply Chains
In Graves Willems (2000) we consider the problem of finding the optimal placement of safety stocks in a supply chain with bounded demand and guaranteed service times. We develop a dynamic programming algorithm for supply chains that can be modeled as spanning trees. The intent of this note is to correct an error in the algorithm. Ekaterina Lesnaia of MIT and Dr. Salal Humair of Optiant independ...
متن کاملOptimizing Strategic Safety Stock Placement in Supply Chains
Manufacturing managers face increasing pressure to reduce inventories across the supply chain. However, in complex supply chains, it is not always obviouswhere to hold safety stock to minimize inventory costs and provide a high level of service to the final customer. In this paper we develop a framework for modeling strategic safety stock in a supply chain that is subject to demand or forecast ...
متن کاملStrategic safety stocks in supply chains with capacity constraints May 2008 , revised January 2009
We generalize the guaranteed-service (GS) model for multi-echelon safety stock placement to include capacity constraints. We first develop an extension of the single-stage base-stock model to include a capacity constraint. We then use this result to model a multi-stage system with a base-stock operating policy. We establish that we can adapt the existing algorithms for the unconstrained case to...
متن کاملIntegrated safety stock management for multi-stage supply chains under production capacity constraints
In the petrochemical, chemical and pharmaceutical industries, supply chains typically consist of multiple stages of production facilities, warehouse/distribution centers, logistical subnetworks and end customers. Supply chain performance in the face of variousmarket and technical uncertainties is usuallymeasured by service level, that is, the expected fraction of demand that the supply chain ca...
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ژورنال
عنوان ژورنال: Manufacturing & Service Operations Management
سال: 2016
ISSN: 1523-4614,1526-5498
DOI: 10.1287/msom.2016.0577