A Mathematical Safety Stock Model for DDMRP Inventory Replenishment
Joint Authors
Source
Mathematical Problems in Engineering
Issue
Vol. 2019, Issue 2019 (31 Dec. 2019), pp.1-10, 10 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2019-09-19
Country of Publication
Egypt
No. of Pages
10
Main Subjects
Abstract EN
The inventory replenishment method of the demand-driven materials requirement planning (DDMRP) draws attention from both scholars and practitioners due to its lower average inventory and, simultaneously, lower stockout rate than existing methods.
However, the safety stock of DDMRP replenishment uses a subjective guideline, which is different from any existing safety stock formula.
The guideline allows the user to subjectively select the parameter values within a certain range, which jeopardizes the consistency of the inventory performance.
This paper proposes an alternative safety stock formula for DDMRP replenishment, which is mathematically defined so as to be consistent.
Moreover, simulation indicates that the proposed formula outperforms the DDMRP guidelines and existing safety stock formulas in terms of average inventory and stockout rate.
American Psychological Association (APA)
Lee, Chan-Ju& Rim, Suk-Chul. 2019. A Mathematical Safety Stock Model for DDMRP Inventory Replenishment. Mathematical Problems in Engineering،Vol. 2019, no. 2019, pp.1-10.
https://search.emarefa.net/detail/BIM-1196592
Modern Language Association (MLA)
Lee, Chan-Ju& Rim, Suk-Chul. A Mathematical Safety Stock Model for DDMRP Inventory Replenishment. Mathematical Problems in Engineering No. 2019 (2019), pp.1-10.
https://search.emarefa.net/detail/BIM-1196592
American Medical Association (AMA)
Lee, Chan-Ju& Rim, Suk-Chul. A Mathematical Safety Stock Model for DDMRP Inventory Replenishment. Mathematical Problems in Engineering. 2019. Vol. 2019, no. 2019, pp.1-10.
https://search.emarefa.net/detail/BIM-1196592
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1196592