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 language | English |
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Pages (from-to) | 963-967 |
Journal | IFAC-PapersOnLine |
Volume | 51 |
Issue number | 11 |
DOIs | |
Publication status | Published - Jan 2018 |
Keywords
- Green Supply Chain
- Inventory control
- Mathematical Approaches for Scheduling
- Poisson
- Service level
- Stochastic Processes
- Substitution