TY - JOUR

T1 - The impact of data collection on fill rate performance in the (R, s, Q) inventory model

AU - Janssen, F.B.S.L.P.

AU - Heuts, R.M.J.

AU - Kok, de, A.G.

PY - 1999

Y1 - 1999

N2 - In this paper we consider the determination of the reorder point s in an (R, s, Q) inventory model subject to a fill rate service level constraint. We assume that the underlying demand process is a compound renewal process. We then derive an approximation method to compute the reorder level such that a target service level is achieved. Restrictions on the input parameters are given, within which this method is applicable. Moreover, we will investigate the effects on the fill rate performance in case the underlying demand process is indeed a compound renewal process, while the demand process is modelled as a discrete-time demand process. That is, the time axis is divided in time units (for example, days) and demands per time unit are independent and identically distributed random variables. It will be shown that smooth and erratic behaviour of the inter-arrival times have different impacts on the performance of the fill rate when demand is modelled as a discrete-time process and in case the underlying demand process is a compound renewal process.

AB - In this paper we consider the determination of the reorder point s in an (R, s, Q) inventory model subject to a fill rate service level constraint. We assume that the underlying demand process is a compound renewal process. We then derive an approximation method to compute the reorder level such that a target service level is achieved. Restrictions on the input parameters are given, within which this method is applicable. Moreover, we will investigate the effects on the fill rate performance in case the underlying demand process is indeed a compound renewal process, while the demand process is modelled as a discrete-time demand process. That is, the time axis is divided in time units (for example, days) and demands per time unit are independent and identically distributed random variables. It will be shown that smooth and erratic behaviour of the inter-arrival times have different impacts on the performance of the fill rate when demand is modelled as a discrete-time process and in case the underlying demand process is a compound renewal process.

U2 - 10.1057/palgrave.jors.2600663

DO - 10.1057/palgrave.jors.2600663

M3 - Article

SN - 0160-5682

VL - 50

SP - 75

EP - 84

JO - Journal of the Operational Research Society

JF - Journal of the Operational Research Society

IS - 1

ER -