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The effect of capacity limitations on safety stock

Authors :
Mapes, John
Source :
International Journal of Operations & Production Management. Oct, 1993, Vol. 13 Issue 10, p26, 8 p.
Publication Year :
1993

Abstract

Production systems need to increase their safety stock as they operate closer to full capacity in order for their customer service levels to be maintained. Simulations are carried out to assess the relationship between excess capacity and stockout risk. The simulations are repeated using different values for average weekly demand and standard deviation of weekly demand. Results indicate that production capacity serves to increase the amount of safety stock needed to maintain a given service level.

Details

ISSN :
01443577
Volume :
13
Issue :
10
Database :
Gale General OneFile
Journal :
International Journal of Operations & Production Management
Publication Type :
Periodical
Accession number :
edsgcl.15095670