TY - JOUR
T1 - A comprehensive survey of guaranteed-service models for multi-echelon inventory optimization
AU - Eruguz, Ayse Sena
AU - Sahin, Evren
AU - Jemai, Zied
AU - Dallery, Yves
PY - 2016/2/1
Y1 - 2016/2/1
N2 - Many real-world supply chains are multi-echelon systems consisting of several stages of procurement, manufacturing, and transportation. In such systems, it is not obvious how to allocate safety stocks to meet the target service levels at the lowest cost. The guaranteed-service model (GSM) is among the existing approaches that allow this problem to be addressed. Although the guaranteed-service model (GSM) was introduced more than 50 years ago, the last decade has witnessed a growing interest. The model extensions and the solution methods developed have expanded the applicability of the GSM. In this paper, we conduct a comprehensive review of the GSM literature. We classify the literature along three axes: (1) extensions of the original GSM through the relaxation of certain modeling assumptions, (2) solution methods developed for different supply chain structures, and (3) industrial applications and the results obtained on real-world problems. Finally, we discuss unsolved issues and suggest future research directions.
AB - Many real-world supply chains are multi-echelon systems consisting of several stages of procurement, manufacturing, and transportation. In such systems, it is not obvious how to allocate safety stocks to meet the target service levels at the lowest cost. The guaranteed-service model (GSM) is among the existing approaches that allow this problem to be addressed. Although the guaranteed-service model (GSM) was introduced more than 50 years ago, the last decade has witnessed a growing interest. The model extensions and the solution methods developed have expanded the applicability of the GSM. In this paper, we conduct a comprehensive review of the GSM literature. We classify the literature along three axes: (1) extensions of the original GSM through the relaxation of certain modeling assumptions, (2) solution methods developed for different supply chain structures, and (3) industrial applications and the results obtained on real-world problems. Finally, we discuss unsolved issues and suggest future research directions.
KW - Guaranteed-service model
KW - Literature review
KW - Multi-echelon inventory system
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U2 - 10.1016/j.ijpe.2015.11.017
DO - 10.1016/j.ijpe.2015.11.017
M3 - Review article
AN - SCOPUS:84950261305
SN - 0925-5273
VL - 172
SP - 110
EP - 125
JO - International Journal of Production Economics
JF - International Journal of Production Economics
ER -