Abstract
We present a simple calculation scheme for the determination of safety stocks for a capacitated single-stage multi-product production-inventory system. Demand is assumed to be stochastic and a given fill rate has to be fulfilled. The lotsizing and sequencing decisions are made on a rolling horizon basis considering sequence-dependent setup cost and time. Results from a simulation experiment show the reliability of the approach under varying parameter settings.
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Wagner, M. (2002). Safety Stocks in Capacity-constrained Production Systems. In: Klose, A., Speranza, M.G., Van Wassenhove, L.N. (eds) Quantitative Approaches to Distribution Logistics and Supply Chain Management. Lecture Notes in Economics and Mathematical Systems, vol 519. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-56183-2_21
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DOI: https://doi.org/10.1007/978-3-642-56183-2_21
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