The performance of two popular service measures on management effectiveness in inventory control

Service is one of the inventory managers' concerns and is frequently incorporated into the ordering decisions. Since there are multiple measures of service available for evaluating the efficiency of an inventory system, a comparative study is necessary and has not been addressed in the literatu...

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Bibliographic Details
Published inInternational journal of production economics Vol. 58; no. 2; pp. 147 - 158
Main Authors Zhaohui Zeng, Amy, Hayya, Jack C.
Format Journal Article
LanguageEnglish
Published Amsterdam Elsevier B.V 15.01.1999
Elsevier Science
Elsevier
Elsevier Sequoia S.A
SeriesInternational Journal of Production Economics
Subjects
Applied sciences
Comparative analysis
Customer service
Economic models
Exact sciences and technology
Inventory control
Inventory control, production control. Distribution
Operational research and scientific management
Operational research. Management science
Optimization
Probability distribution
Studies
Inventory control
Probability distribution
Customer service
Optimization
Demand
Gamma distribution
Lead time
Exponential distribution
Gaussian distribution
Cost analysis
Weibull distribution
Comparative study
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Summary:Service is one of the inventory managers' concerns and is frequently incorporated into the ordering decisions. Since there are multiple measures of service available for evaluating the efficiency of an inventory system, a comparative study is necessary and has not been addressed in the literature. This paper evaluates two popular service measures, which are the probability of no stockout during lead time and the fill rate, in the context of continuous inventory systems. The performance of the two measures is examined by evaluating the tradeoff among the cost, the level of service, and the inventory turnover ratio.
ISSN:0925-5273
1873-7579
DOI:10.1016/S0925-5273(98)00210-2