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

  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.},
  • 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
    47 Citations

    Figures and Topics from this paper

    Explore Further: Topics Discussed in This Paper

    Construction Material Safety-Stock Determination Under Nonstationary Stochastic Demand and Random Supply Yield
    • 13
    • Highly Influenced
    Exact and heuristic linear-inflation policies for an inventory model with random yield and arbitrary lead times
    • 32
    • PDF
    Operations research models and methods for safety stock determination: A review
    • 1
    The shape of the yield and its impact on inventory decisions
    • 2
    Periodic review inventory systems with fixed order cost and uniform random yield
    • 4
    • PDF


    The Structure of Periodic Review Policies in the Presence of Random Yield
    • 342
    Periodic Review Production Models With Variable Yield And Uncertain Demand
    • 172
    The finite multiple lot sizing problem with interrupted geometric yield and holding costs
    • 25
    Myopic Heuristics for the Random Yield Problem
    • 120
    • Highly Influential
    Technical note - Linear Inflation Rules for the Random Yield Problem: Analysis and Computations
    • 34
    • PDF
    Technical Note - Note on "Myopic Heuristics for the Random Yield Problem"
    • 26
    How to protect against demand and yield risks in MRP systems
    • 47