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The Effect of Commonality on Safety Stock in a Simple Inventory Model


  • Kenneth R. Baker

    (The Amos Tuck School of Business Administration, Dartmouth College, Hanover, New Hampshire 03755)

  • Michael J. Magazine

    (Department of Management Sciences, University of Waterloo, Waterloo, Ontario, Canada)

  • Henry L. W. Nuttle

    (Department of Industrial Engineering, North Carolina State University, Raleigh, North Carolina 27695)


We examine the effects of component commonality on optimal safety stock levels in a two-product, two-level inventory model. The criterion is to minimize system safety stock subject to a service level constraint. Although our model is specialized, its analysis provides insights not available in other multilevel inventory models.

Suggested Citation

  • Kenneth R. Baker & Michael J. Magazine & Henry L. W. Nuttle, 1986. "The Effect of Commonality on Safety Stock in a Simple Inventory Model," Management Science, INFORMS, vol. 32(8), pages 982-988, August.
  • Handle: RePEc:inm:ormnsc:v:32:y:1986:i:8:p:982-988

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    References listed on IDEAS

    1. Ian I. Mitroff, 1972. "The Myth of Objectivity OR Why Science Needs a New Psychology of Science," Management Science, INFORMS, vol. 18(10), pages 613-618, June.
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