Stock control analytics: a data-driven approach to compute the fill rate for the (s, S) system considering undershoots

Inventory policies are traditionally characterized assuming several hypotheses that lead to commit important errors when are used in practical environments. This is the case when the inventory is continuously reviewed by means of the Order-Point, Order-Up-to-Level (s, S) system and undershoots, i.e....

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Detalles Bibliográficos
Autores: Babiloni, Eugenia, Guijarro, Ester, Trapero, Juan Ramón
Tipo de recurso: artículo
Fecha de publicación:2020
País:España
Institución:Universidad de Castilla-La Mancha
Repositorio:RUIdeRA. Repositorio Institucional de la UCLM
OAI Identifier:oai:ruidera.uclm.es:10578/23978
Acceso en línea:http://hdl.handle.net/10578/23978
Access Level:acceso abierto
Palabra clave:Inventory
Fill Rate
Lost sales
Undershoots
State Dependent Parameter
Descripción
Sumario:Inventory policies are traditionally characterized assuming several hypotheses that lead to commit important errors when are used in practical environments. This is the case when the inventory is continuously reviewed by means of the Order-Point, Order-Up-to-Level (s, S) system and undershoots, i.e. the difference between the order-point and the inventory position when it is reached, are neglected. This paper analyses conceptually and empirically the bias on the classic fill rate formula when neglecting undershoots. After that, we suggest a non-parametric approach based on a State Dependent Parameter algorithm to propose a new non-linear expression, named analytic fill rate that correct that bias. The proposed approach is developed under a data-driven perspective and is easily implementable in practice. This research is developed in a lost sales context with stochastic and i.i.d. discrete demand