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 |
|---|---|
| Pages (from-to) | 963-967 |
| Journal | IFAC-PapersOnLine |
| Volume | 51 |
| Issue number | 11 |
| DOIs | |
| Publication status | Published - Jan 2018 |
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Keywords
- Green Supply Chain
- Inventory control
- Mathematical Approaches for Scheduling
- Poisson
- Service level
- Stochastic Processes
- Substitution
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On the δ-service level for demand substitution in inventory control ⁎. / Buisman, Marjolein; Haijema, Rene; Hendrix, Eligius M.T.
In: IFAC-PapersOnLine, Vol. 51, No. 11, 01.2018, p. 963-967.Research output: Contribution to journal › Article › Academic › peer-review
TY - JOUR
T1 - On the δ-service level for demand substitution in inventory control ⁎
AU - Buisman, Marjolein
AU - Haijema, Rene
AU - Hendrix, Eligius M.T.
PY - 2018/1
Y1 - 2018/1
N2 - 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.
AB - 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.
KW - Green Supply Chain
KW - Inventory control
KW - Mathematical Approaches for Scheduling
KW - Poisson
KW - Service level
KW - Stochastic Processes
KW - Substitution
U2 - 10.1016/j.ifacol.2018.08.483
DO - 10.1016/j.ifacol.2018.08.483
M3 - Article
VL - 51
SP - 963
EP - 967
JO - IFAC-PapersOnLine
JF - IFAC-PapersOnLine
SN - 2405-8963
IS - 11
ER -