How do we define service in a multiechelon situation? Normally, service is measured only at the lowest
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How do we define service in a multiechelon situation? Normally, service is measured only at the lowest echelon. In a multiechelon system, a stockout at one of the higher echelons has only a secondary effect on service: it may lengthen the lead time for a lower echelon, which ultimately may cause customer disservice. We can see that safety stock at a particular echelon has effects on stockouts at other echelons. Thus, we have to be careful to avoid unnecessary duplication of safety stocks.? P-96
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Inventory And Production Management In Supply Chains
ISBN: 9781032179322
4th Edition
Authors: Edward A Silver, David F Pyke, Douglas J Thomas
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