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Risk-Pooling Approach in Inventory Control Model for Multi-products in a Distribution Network Under Uncertainty

  • Vats PeeyushEmail author
  • Soni Gunjan
  • A. P. S. Rathore
Conference paper
Part of the Advances in Intelligent Systems and Computing book series (AISC, volume 949)

Abstract

Risk-pooling is a substantial approach for controlling inventory in supply chain under uncertainty. In this approach, independent demands of two or more regions are aggregated; as a result, the demand uncertainty is reduced. This approach is also very much useful in reducing the safety stocks. In this study, risk-pooling approach is used in inventory optimization for three different types of products in a two-stage supply chain network under service-level constraint. This study represents a mathematical approach for inventory optimization using risk-pooling concept for different types of the product, and it provides optimum inventory policy (reorder point, ordering quantity, and total cost) along with expected shortages per cycle (ESC), fill rate (FR), safety stock (SS), and average inventory (AI).

Keywords

Risk-pooling Inventory optimization Multi-products Uncertainty 

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Copyright information

© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  1. 1.Malaviya National Institute of TechnologyJaipurIndia

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