Efficient computation of time-based customer service levels in a multi-item, multi-echelon supply chain: A practical approach for inventory optimization
Caggiano, Kathryn E.
Jackson, Peter L.
Muckstadt, John A.
Rappold, James A.
Time-based item fill rates, or "channel" fill rates, are the building blocks needed to evaluate steady-state compliance with time-based customer service agreements. Exact computation of channel fill rates is both difficult and time-consuming, yet their accurate assessment is essential for system-wide inventory optimization. We describe and validate a practical method for computing channel fill rates in a multi-item, multi-echelon service parts distribution system. A simulation study is presented which shows that, in a three-echelon setting, our estimation errors are very small over a wide range of base stock level vectors. A more accurate, though less efficient, approximation method is also evaluated for comparison.
Inventory and service optimization Distribution resource planning Multi-echelon inventory Service parts management Time-based fill rates Modeling methodologies
In order to set up a list of libraries that you have access to,
you must first login
or sign up.
Then set up a personal list of libraries from your profile page by
clicking on your user name at the top right of any screen.