publication . Other literature type . Article . 2005

Measuring Item Fill-Rate Performance in a Finite Horizon

Douglas J. Thomas;
  • Published: 01 Jan 2005
  • Publisher: Institute for Operations Research and the Management Sciences (INFORMS)
Abstract
The standard treatment of fill rate relies on stationary and serially independent demand over an infinite horizon. Even if demand is stationary, managers are held accountable for performance over a finite horizon. In a finite horizon, the fill rate is a random variable. Studying the distribution is relevant because a vendor may be subject to financial penalty if she fails to achieve her target fill rate over a specified finite period. It is known that for a zero lead time, base-stock model, the expected value of a finite-horizon fill rate exceeds the long-run fill rate. In this paper, I investigate the behavior of the distribution of the finite-horizon fill rate...
Subjects
free text keywords: inventory, base-stock policy, service-level constraint, Management Science and Operations Research, Strategy and Management, Finite horizon, Fill rate, Random variable, Vendor, Operations management, Horizon, Economics, Expected value, Lead time, Time horizon
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publication . Other literature type . Article . 2005

Measuring Item Fill-Rate Performance in a Finite Horizon

Douglas J. Thomas;