CORAL Seminar: Christian Larsen, AU

Title: Estimation of the fill rate in a lost-sales (R,Q) system only using input geared for an empirical cycle service level measurement

2021.03.25 | Solveig Sørensen

Date Fri 28 May
Time 14:00 15:00
Location Online via Zoom

Presenter: Christian Larsen, AU

Abstract:  We study an (R,Q) inventory system where the size of the replenishment order, Q is predetermined and assuming unfilled demand is lost. We furthermore assume that it is not possible to get access to any detailed Point-Of-Sales (POS) data. Known only, are the inventory levels, just prior to the receipt of the incoming replenishment orders. Under these circumstances we investigate different estimation procedures for estimating the fill rate for a given re-order point R. Thereafter we investigate the case where the possible information are only collected in a few cycles and an initial determination of the re-order point R is made in order to secure a fill rate target. As new information is collected, the re-order point is recalculated. We investigate whether such a procedure will make the re-order point converge to the re-order point that would have been computed, if knowing the underlying (compound Poisson) demand process.

Organizor: Erland Hein Nielsen

CORAL seminars