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| Author: | Boyaci, T. Gallego, G. |
| Title: | Serial Production/Distribution Systems Under Service Constraints |
| Journal: | Manufacturing & service operations management
2001 : WINTER, VOL. 3:1, p. 43-50 |
| Index terms: | PRODUCTION DISTRIBUTION SERVICE |
| Language: | eng |
| Abstract: | The authors analyze the problem of minimizing average inventory costs subject to fill-rate type of service-level constraints in serial and assembly production/distribution systems. The authors propose optimal and heuristic procedures to solve this problem. Their model and solution procedures can be used to manage the fill rate or fill rate within a "time window" service measures. The authors also relate their service-constrained model to the traditional model with back-order costs and show that it is possible to prespecify backorder cost rates to achieve desired service levels. The authors explore the inventory cost impact of such a practice/ and they find that the cost penalty can be very high. |
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