Abstract
The Guaranteed-Service Model (GSM) aims at determining the optimal placement and amount of safety stocks in a guaranteed-service supply chain. In the GSM, safety stocks are used to protect against demand variability up to specified demand bounds. The model does not address what happens when demand exceeds these bounds while in practice, companies might take extraordinary measures to handle the excess demand. For guaranteed-service supply chains, assessing the service level that results from carrying safety stocks is crucial to estimate the real frequency of extraordinary measures to be deployed. In the GSM literature, demand bounds are usually defined in terms of Cycle-Service-Level (CSL). Simulation studies we carried for realworld supply chains show that the effectively observed CSL at final customer stages may be less than the one used to define the demand bounds and the absolute gap may be up to 4.76%.
Original language | English |
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Title of host publication | 2013 5th International Conference on Modeling, Simulation and Applied Optimization (ICMSAO), 28-30 April 2013, Hammamet |
Place of Publication | Piscataway |
Publisher | Institute of Electrical and Electronics Engineers |
Pages | 1-6 |
ISBN (Print) | 978-1-4673-5812-5 |
DOIs | |
Publication status | Published - 2013 |
Event | 5th International Conference on Modeling, Simulation and Applied Optimization (ICMSAO 2013) - Hammamet, Tunisia Duration: 28 Apr 2013 → 30 Apr 2013 Conference number: 5 |
Conference
Conference | 5th International Conference on Modeling, Simulation and Applied Optimization (ICMSAO 2013) |
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Abbreviated title | ICMSAO 2013 |
Country/Territory | Tunisia |
City | Hammamet |
Period | 28/04/13 → 30/04/13 |