Applying the guaranteed-service model to a decentralized supply chain: Impact on the Cycle-Service-Level

Ayse Sena Eruguz, Zied Jemai, Evren Sahin, Yves Dallery

Research output: Contribution to ConferencePaperAcademic

Abstract

In a multi-echelon inventory system, the Guaranteed-Service Model (GSM) aims at determining the optimal placement and amount of safety stocks that ensures a target service level at the lowest cost. This model assumes that demand is bounded at each stage of the considered supply chain where demand bounds are usually obtained on the basis of a target Cycle-Service-Level (CSL). Recent works show that the GSM can also be applied to decentralized supply chains, i.e. when different parts of the supply chain are controlled by different actors. However, the choice of demand bounds at different parts of the supply chain may affect the final customer CSL. This fact is usually ignored in the existing literature. In this paper, we first illustrate how the upstream demand bounds affect the downstream customer CSL. Besides, we propose two approaches that ensure to reach the target CSL in decentralized supply chains.

Original languageEnglish
Publication statusPublished - 1 Jan 2013
Externally publishedYes
Event2013 International Conference on Industrial Engineering and Systems Management, IEEE - IESM 2013 - Rabat, Morocco
Duration: 28 Oct 201330 Oct 2013

Conference

Conference2013 International Conference on Industrial Engineering and Systems Management, IEEE - IESM 2013
CountryMorocco
CityRabat
Period28/10/1330/10/13

Keywords

  • Decentralized supply chain
  • Guaranteed-service model
  • Inventory control

Fingerprint

Dive into the research topics of 'Applying the guaranteed-service model to a decentralized supply chain: Impact on the Cycle-Service-Level'. Together they form a unique fingerprint.

Cite this