Cycle-Service-Level in Guaranteed-Service supply chains

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

Research output: Chapter in Book / Report / Conference proceedingConference contributionAcademicpeer-review

Abstract

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%.

Original languageEnglish
Title of host publication2013 5th International Conference on Modeling, Simulation and Applied Optimization, ICMSAO 2013
DOIs
Publication statusPublished - 19 Aug 2013
Externally publishedYes
Event2013 5th International Conference on Modeling, Simulation and Applied Optimization, ICMSAO 2013 - Hammamet, Tunisia
Duration: 28 Apr 201330 Apr 2013

Publication series

Name2013 5th International Conference on Modeling, Simulation and Applied Optimization, ICMSAO 2013

Conference

Conference2013 5th International Conference on Modeling, Simulation and Applied Optimization, ICMSAO 2013
CountryTunisia
CityHammamet
Period28/04/1330/04/13

Keywords

  • cycle service level
  • guaranteed-service model
  • inventory control
  • supply chain management

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