On the shortage control in a continuous review (Q,r) inventory policy usingαLservice-level

Escalona, Pablo; Araya, Diego; Simpson, Enrique; Ramirez, Mario; Stegmaier, Raúl

doi:10.1051/ro/2021125

Cited by 4 publications

(2 citation statements)

References 34 publications

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“…In this paper, we assume that shortage events at each DC are controlled using the fill‐rate service level defined by Schneider (1981). Under normally distributed demand, the fill rate is equivalent to the ready‐rate service level defined as the probability (α) of not being out of stock at an arbitrary time or equivalently as the fraction of time with a positive stock‐on‐hand (Silver et al., 1998; Axsäter, 2015; Escalona et al., 2021). Thus, the fill rate under normally distributed demand explicitly controls the backorders size and stockouts frequency, both at an arbitrary time.…”

Section: Problem Description and Formulationmentioning

confidence: 99%

Fill‐rate service level constrained distribution network design

Escalona

Angulo

Brotcorne

et al. 2023

Int Trans Operational Res

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The design of distribution networks that simultaneously consider location and inventory decisions seeks to balance costs and product availability. The most commonly observed measure of product availability in practical settings is the fill‐rate service level. However, the optimal design of a distribution network that considers the fill rate to control shortages of fast‐moving consumer goods (FMCG) is considered intractable and has only been addressed by heuristic methods. This paper addresses the optimal design of a distribution network for FMCG able to provide high fill‐rate service level under a continuous review policy. Considering the exact formulation for the provided fill rate, we formulated a joint location–inventory model with fill‐rate service level constraints as a convex mixed integer nonlinear problem for which a novel decomposition‐based outer approximation algorithm is proposed. Numerical experiments have shown that our solution approach provides good‐quality solutions that are on average 0.15% and, at worst, 2.2% from the optimal solution.

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Section: Problem Description and Formulationmentioning

confidence: 99%

Fill‐rate service level constrained distribution network design

Escalona

Angulo

Brotcorne

et al. 2023

Int Trans Operational Res

Self Cite

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“…11. Shortages are allowed and those are partially back-ordered, as in Barman et al [7], Khalilpourazari et al [19], Escalona et al [13] and Khalilpourazari et al [18]. Backordered demands are to be satisfied at the next cycle.…”

mentioning

confidence: 99%

Impacts of green and preservation technology investments on a sustainable EPQ model during COVID-19 pandemic

Barman

Pervin²,

Roy

2022

RAIRO-Oper. Res.

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Carbon and Sulfur dioxides emissions are the key issues of global warming that affects on human health. Emissions cap- and -trade policy is a key mechanism implemented in several countries to reduce the emissions. Nowadays, public gathering is restricted due to the pandemic situation caused by COVID-19. As a result, people are facing huge problems in their regular activities and lifestyle. During the lockdown periods, demands for few merchandises decrease and the deterioration rate increases. Moreover, because of the unavailability of raw materials and labours during the lockdown, shortages occur at the manufacturing company. Keeping these problems in mind, a multi-objective sustainable economic production quantity model is proposed with partially back-ordering shortages, in which the effects of sustainability are investigated. To handle the demand fluctuation throughout the current pandemic, emergency level dependent demand rate is assumed. To reduce greenhouse gases emissions and deterioration rate, investments in green technology and preservation technology efforts are used. The objectives of this study are to maximize the manufacturer’s profit and minimize the greenhouse gases emissions for producing green products. The multi-objective model is solved by utilizing the fuzzy goal programming approach. The mathematical model is illustrated by four numerical examples. The main finding of the work is that under both green and preservation technologies investments, a sustainable model with partially back-ordering shortages and lockdown level dependent demand rate decreases justifiable greenhouse gases emissions and increases the product’s greening level. The results indicate that the system profit is increased by 16.1% by investing in both preservation and green technology. Furthermore, a sensitivity analysis is performed along with some managerial insights for practitioners. Finally, the paper is ended with conclusions and future research tips.

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