The Effect of Commonality on Safety Stock in a Simple Inventory Model
Kenneth R. Baker, Michael J. Magazine, Henry L. W. Nuttle
Management Science · 1986 · Volume 32 · Issue 8
Abstract
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.
Keywords
inventory/production, measures of effectiveness, multi-echelon
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