Abstract
Production planning and inventory control is facing challenging risk management problems if it is confronted with uncertainties from both the demand and the process side. By analyzing the respective planning problems with methods of stochastic inventory control it is possible to gain remarkably deep insights into the way how optimal reorder and safety stock management responds to joint demand and yield risks. These insights can be exploited to assess and improve the simple type of risk management rules employed in MRP systems to cope with uncertainties in demand and production yield.
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© 2006 Deutscher Universitäts-Verlag/GWV Fachverlage GmbH, Wiesbaden
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Inderfurth, K. (2006). Risk and Safety Stock Management in Production Planning and Inventory Control with Stochastic Demand and Yield. In: Morlock, M., Schwindt, C., Trautmann, N., Zimmermann, J. (eds) Perspectives on Operations Research. DUV. https://doi.org/10.1007/978-3-8350-9064-4_16
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DOI: https://doi.org/10.1007/978-3-8350-9064-4_16
Publisher Name: DUV
Print ISBN: 978-3-8350-0234-0
Online ISBN: 978-3-8350-9064-4
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