The Effect of Commonality on Safety Stock in a Simple Inventory Model

We examine the effects of component commonality on optimal safety stock levels in a two-product, two-level inventory model. The criterion is to minimize system safety stock subject to a service level constraint. Although our model is specialized, its analysis provides insights not available in other multilevel inventory models.

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Year of publication:	1986
Authors:	Baker, Kenneth R. ; Magazine, Michael J. ; Nuttle, Henry L. W.
Published in:	Management Science. - Institute for Operations Research and the Management Sciences - INFORMS, ISSN 0025-1909. - Vol. 32.1986, 8, p. 982-988
Publisher:	Institute for Operations Research and the Management Sciences - INFORMS
Subject:	inventory/production \| measures of effectiveness \| multi-echelon

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Extent:	application/pdf
Type of publication:	Article
Other identifiers:	10.1287/mnsc.32.8.982 [DOI]
Source:	RePEc - Research Papers in Economics

Persistent link: https://ebvufind01.dmz1.zbw.eu/10009208662