Applying the Guaranteed-Service Model to a Decentralized Supply Chain: Impact on the Cycle- Service-Level

Zied Jemai (), Ayse Sena, Evren Sahin () and Yves Dallery ()
Additional contact information
Zied Jemai: LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec
Evren Sahin: LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec
Yves Dallery: LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec

Post-Print from HAL

Abstract: —In a multi-echelon inventory system, the Guaranteed-Service Model (GSM) aims at determining the optimal placement and amount of safety stocks that ensures a target service level at the lowest cost. This model assumes that demand is bounded at each stage of the considered supply chain where demand bounds are usually obtained on the basis of a target Cycle-Service-Level (CSL). Recent works show that the GSM can also be applied to decentralized supply chains, i.e. when different parts of the supply chain are controlled by different actors. However, the choice of demand bounds at different parts of the supply chain may affect the final customer CSL. This fact is usually ignored in the existing literature. In this paper, we first illustrate how the upstream demand bounds affect the downstream customer CSL. Besides, we propose two approaches that ensure to reach the target CSL in decentralized supply chains.

Keywords: Inventory control; Guaranteed-service model; Decentralized supply chain (search for similar items in EconPapers)
Date: 2013-10-28
References: Add references at CitEc
Citations:

Published in 5th International Conference on Idustrial Engineering and Systems Management (IESM'13), Oct 2013, Rabat, Morocco

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01672413

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().