Order-up-to Level and Reorder Level Policy under Differences between Replenishing and Shipping Units

DOI Web Site Open Access

Bibliographic Information

Other Title
  • 入出庫単位が異なる場合の発注点補充点方式の検討
  • ニュウシュツコ タンイ ガ コトナル バアイ ノ ハッチュウテン ホジュウテン ホウシキ ノ ケントウ

Search this article

Abstract

The control and maintenance of inventories are vital for many companies because the effective management of inventories can provide better customer service and improve profitability. In recent years, the number of different stock keeping units (SKUs) that must be delivered is exploding. Meanwhile, due to the spread of the electronic commerce, filling customer orders within a 24-hour period is becoming the new standard in many industries, which means that an increasing number of SKUs has to be delivered more frequently and faster. We consider a warehouse configured with a forward area, where items are stored in cases for easy retrieval by an order picker, and a reserve area, where items are stored by the case for picking and replenishing stocks in the forward area. Based on real data, this paper studies the setting of order-up-to level and reorder level in (s,S) policy and determining the proper maintenance intervals (PMIs) in order to reduce stockouts and excessive stock in a distribution center. Order-up-to and reorder levels should be decided after comprehending the trade-off between inventory space and emergency replenishment. Furthermore, we show maintenance at PMIs can lead to cost savings. Such improvements would allow the distribution center to reduce stock-outs and excessive stock, and to increase productivity.

Journal

Related Projects

See more

Keywords

Details 詳細情報について

Report a problem

Back to top