The Effect of Commonality on Safety Stock in a Simple Inventory Model
- 1 August 1986
- journal article
- Published by Institute for Operations Research and the Management Sciences (INFORMS) in Management Science
- Vol. 32 (8) , 982-988
- https://doi.org/10.1287/mnsc.32.8.982
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
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