The multiechelon inventory model in Example 12.9 requires about 595 items of on-hand or pipeline inventory, on

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The multiechelon inventory model in Example 12.9 requires about 595 items of on-hand or pipeline inventory, on average, to satisfy the fill rate constraint, even though the mean total demand per week is only 450. See how this changes as the amount of uncertainty decreases. Specifically, make the standard deviations of demand smaller and then run RISKOptimizer (with exactly the same settings). You can make the standard deviations as small as you like. Does the mean total system inventory get closer to 450?

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Practical Management Science

ISBN: 1497

5th Edition

Authors: Wayne L. Winston, Christian Albright

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