Concepts for safety stock determination under stochastic demand and different types of random production yield

@article{Inderfurth2013ConceptsFS,
  title={Concepts for safety stock determination under stochastic demand and different types of random production yield},
  author={K. Inderfurth and S. Vogelgesang},
  journal={Eur. J. Oper. Res.},
  year={2013},
  volume={224},
  pages={293-301}
}
  • K. Inderfurth, S. Vogelgesang
  • Published 2013
  • Economics, Computer Science
  • Eur. J. Oper. Res.
  • We consider a manufacturer’s stochastic production/inventory problem under periodic review and present methods for safety stock determination to cope with uncertainties that are caused by stochastic demand and different types of yield randomness. Following well-proven inventory control concepts for this problem type, we focus on a critical stock policy with a linear order release rule. A central parameter of this type of policy is given by the safety stock value. When non-zero manufacturing… CONTINUE READING
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