publication . Article . Other literature type . 2004

Fill Rates of Single-Stage and Multistage Supply Systems

Name: Fill Rates of Single-Stage and Multistage Supply Systems
Creator: Matthew J. Sobel
Keywords: fill rate, service level, supply system, base-stock-level policy, multistage, supply chain, logistics

Matthew J. Sobel;

Open Access

Published: 01 Jan 2004 Journal: Manufacturing & Service Operations Management, volume 6, issue 1 June, pages 41-52

Summary

Abstract

A supply system's fill rate is the fraction of demand that is met from on-hand inventory. This paper presents formulas for the fill rate of periodic review supply systems that use base-stock-level policies. The first part of the paper contains fill-rate formulas for a single-stage system and general distributions of demand. When demand is normally distributed, an exact expression uses only the standard normal distribution and density functions, and a good approximation uses only the standard normal distribution function. The second part of the paper derives the probability distribution of the finished goods inventory level for serial systems with buffer inventor...

doi: 10.1287/msom.1030.0027

Subjects

free text keywords: fill rate, service level, supply system, base-stock-level policy, multistage, supply chain, logistics, Economics, Finished good, Microeconomics, Supply chain, Normal distribution, Mathematical optimization, Fill rate, Periodic graph (geometry), Probability distribution, Single stage, Service level

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