TY - GEN
T1 - Cycle-Service-Level in Guaranteed-Service supply chains
AU - Eruguz, Ayse Sena
AU - Jemai, Zied
AU - Sahin, Evren
AU - Dallery, Yves
PY - 2013/8/19
Y1 - 2013/8/19
N2 - The Guaranteed-Service Model (GSM) aims at determining the optimal placement and amount of safety stocks in a guaranteed-service supply chain. In the GSM, safety stocks are used to protect against demand variability up to specified demand bounds. The model does not address what happens when demand exceeds these bounds while in practice, companies might take extraordinary measures to handle the excess demand. For guaranteed-service supply chains, assessing the service level that results from carrying safety stocks is crucial to estimate the real frequency of extraordinary measures to be deployed. In the GSM literature, demand bounds are usually defined in terms of Cycle-Service-Level (CSL). Simulation studies we carried for real-world supply chains show that the effectively observed CSL at final customer stages may be less than the one used to define the demand bounds and the absolute gap may be up to 4.76%.
AB - The Guaranteed-Service Model (GSM) aims at determining the optimal placement and amount of safety stocks in a guaranteed-service supply chain. In the GSM, safety stocks are used to protect against demand variability up to specified demand bounds. The model does not address what happens when demand exceeds these bounds while in practice, companies might take extraordinary measures to handle the excess demand. For guaranteed-service supply chains, assessing the service level that results from carrying safety stocks is crucial to estimate the real frequency of extraordinary measures to be deployed. In the GSM literature, demand bounds are usually defined in terms of Cycle-Service-Level (CSL). Simulation studies we carried for real-world supply chains show that the effectively observed CSL at final customer stages may be less than the one used to define the demand bounds and the absolute gap may be up to 4.76%.
KW - cycle service level
KW - guaranteed-service model
KW - inventory control
KW - supply chain management
UR - http://www.scopus.com/inward/record.url?scp=84881463238&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84881463238&partnerID=8YFLogxK
U2 - 10.1109/ICMSAO.2013.6552572
DO - 10.1109/ICMSAO.2013.6552572
M3 - Conference contribution
AN - SCOPUS:84881463238
SN - 9781467358149
T3 - 2013 5th International Conference on Modeling, Simulation and Applied Optimization, ICMSAO 2013
BT - 2013 5th International Conference on Modeling, Simulation and Applied Optimization, ICMSAO 2013
T2 - 2013 5th International Conference on Modeling, Simulation and Applied Optimization, ICMSAO 2013
Y2 - 28 April 2013 through 30 April 2013
ER -