Advanced Search
MyIDEAS: Login

Concepts for Safety Stock Determination under Stochastic Demand and Different Types of Random Production Yield

Contents:

Author Info

  • Karl Inderfurth

    ()
    (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)

  • Stephanie Vogelgesang

    ()
    (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)

Registered author(s):

    Abstract

    We consider a manufacturer's stochastic production/inventory problem under periodic review and present concepts for safety stock determination to cope with uncertainties that are caused by stochastic demand and different types of yield randomness. Order releases follow a linear control rule. Taking manufacturing lead times into account it turns out that safety stocks have to be considered that vary from period to period. We present an approach for calculating these dynamic safety stocks. Additionally, to support practical manageability we suggest two approaches for determining appropriate static safety stocks that are easier to apply.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.fww.ovgu.de/fww_media/femm/femm_2011/2011_03.pdf
    File Function: First version, 2011
    Download Restriction: no

    Bibliographic Info

    Paper provided by Otto-von-Guericke University Magdeburg, Faculty of Economics and Management in its series FEMM Working Papers with number 110003.

    as in new window
    Length: 24 pages
    Date of creation: Feb 2011
    Date of revision:
    Handle: RePEc:mag:wpaper:110003

    Contact details of provider:
    Postal: Universitätsplatz 2, Gebäude W und I, 39106 Magdeburg
    Phone: (0391) 67-18 584
    Fax: (0391) 67-12 120
    Web page: http://www.ww.uni-magdeburg.de
    More information through EDIRC

    Related research

    Keywords: stochastic demand; random yield; lot sizing; safety stocks;

    This paper has been announced in the following NEP Reports:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Tomáš Buus, 2011. "Sharing Cost of Shared Services Centre," European Financial and Accounting Journal, University of Economics, Prague, vol. 2011(4), pages 49-59.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:mag:wpaper:110003. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guido Henkel).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.