As a means of avoiding stockouts, safety\r\nstocks play an important role in achieving customer\r\nsatisfaction and retention. However, traditional safety\r\nstock theory is based on the assumption of the\r\nimmediate delivery of the ordered products, which is\r\nnot a common condition in businesstobusiness\r\ncontexts. Virtual safety stock theory was conceived to\r\nraise the service level by exploiting the potential time\r\ninterval in the ordertodelivery process. Nevertheless,\r\nits mathematical complexity prevented this technique\r\nfrom being widely adopted in the industrial world. In\r\nthis paper, we present a simple method to test virtual\r\nsafety stock effectiveness through simulation in an\r\ninventory system using a base stock policy with\r\nperiodicreviewsandbackorders.Thisapproachcanbe\r\nusefulforresearchersaswellaspractitionerswhowant\r\nto model the behaviour of an inventory system under\r\nuncertain conditions and verify the opportunity for\r\nsettingupavirtualsafetystockontopof,orinsteadof,\r\nthetraditionalphysicalsafetystock.
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