On the δ-service level for demand substitution in inventory control

Research output: Chapter in Book/Report/Conference proceedingConference paperAcademicpeer-review

Abstract

In retail, it is usual to measure the performance of inventory control by a so-called service level which measures the number of days (probability) that demand is fulfilled for a certain product, i.e. the product is not out of stock. Part of the customers that do not encounter the product in stock will look for a substitute. To measure the performance, we introduce a so-called δ-service level which measures the availability of the substitute. We investigate the effect of safety levels and substitution probability on the δ-service level and illustrate them based on the case of poisson demand.

Original languageEnglish
Title of host publication16th IFAC Symposium on Information Control Problems in Manufacturing INCOM 2018
EditorsM. Macchi, L. Monostori, R. Pinto
PublisherIFAC
Pages963-967
Volume51
Edition11
DOIs
Publication statusPublished - 6 Sept 2018

Publication series

NameIFAC-PapersOnLine
PublisherElsevier
ISSN (Print)2405-8963

Keywords

  • Green Supply Chain
  • Inventory control
  • Mathematical Approaches for Scheduling
  • Poisson
  • Service level
  • Stochastic Processes
  • Substitution

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