Study on the Criticism of the Safety Stock in Supply Chain Environment

Authors

  • Riyadh Al-fartoossy university of technology, , Baghdad and 00964, Iraq
  • AllaEldin Kassam university of technology, , Baghdad and 00964, Iraq
  • Sawsan Sabih university of technology, , Baghdad and 00964, Iraq

Keywords:

Supply Chain, Safety Stock, Stochastic Service Approach, Optimization.

Abstract

Supply chain optimization is playing a great role for organizations to face high dynamic environment. One of the most important parts in optimization is inventory optimization which can obtained by optimize the safety stock based on the balance between holding cost of safety stock quantities and shortage cost of unfulfilled of customer demand. Fuzzy logic system considered adoptable tool can deals with uncertainty and dynamic environment and it can assemble and control demand and supply variability to identify optimal safety stock level by using same resources. A major limitation in safety stock researches is the rare of the researches that deals dynamically with inventory and employing daily basis calculation; hence the aim of this research is to provide comprehensive study about safety stock and its approaches as well as the trends of future work in this field.

References

S. Humair, J. D. Ruark, B. Tomlin, and S. P. Willems, "Incorporating stochastic lead times into the guaranteed service model of safety stock optimization," Interfaces, vol. 43, pp. 421-434, 2013.

G. Janakiraman, S. Seshadri, and J. G. Shanthikumar, "A comparison of the optimal costs of two canonical inventory systems," Operations Research, vol. 55, pp. 866-875, 2007.

Y.-J. Lin, "An integrated vendor–buyer inventory model with backorder price discount and effective investment to reduce ordering cost," Computers & Industrial Engineering, vol. 56, pp. 1597-1606, 2009.

A. C. RĂDĂŞANU, "INVENTORY MANAGEMENT, SERVICE LEVEL AND SAFETY STOCK," EDITORIAL BOARD, p. 132.

M. Braglia, D. Castellano, and M. Frosolini, "A novel approach to safety stock management in a coordinated supply chain with controllable lead time using present value," Applied Stochastic Models in Business and Industry, vol. 32, pp. 99-112, 2016.

H. Osman and K. Demirli, "Integrated safety stock optimization for multiple sourced stockpoints facing variable demand and lead time," International Journal of Production Economics, vol. 135, pp. 299-307, 2012.

A. Y. M. Alfaify, "Integrated Modelling for Supply Chain Planning and Multi-Echelon Safety Stock Optimization in Manufacturing Systems," Université d'Ottawa/University of Ottawa, 2014.

S. M. ALI and K. NAKADE, "Scenario-based Supply Chain Disruptions Management Framework-A Quantitative Approach," Innovation and Supply Chain Management, vol. 8, pp. 81-91, 2014.

R. H. Teunter, M. Z. Babai, and A. A. Syntetos, "ABC classification: service levels and inventory costs," Production and Operations Management, vol. 19, pp. 343-352, 2010.

Y. Meng, "The effect of inventory on supply chain," ed, 2006.

G. A. Keskin, S. İ. Omurca, N. Aydın, and E. Ekinci, "A comparative study of production–inventory model for determining effective production quantity and safety stock level," Applied Mathematical Modelling, vol. 39, pp. 6359-6374, 2015.

S. Klosterhalfen and S. Minner, "Safety stock optimisation in distribution systems: a comparison of two competing approaches," International Journal of Logistics: Research and Applications, vol. 13, pp. 99-120, 2010.

N. G. Hua and S. P. Willems, "Analytical insights into two-stage serial line supply chain safety stock," International Journal of Production Economics, vol. 181, pp. 107-112, 2016.

D. Simchi-Levi and Y. Zhao, "Safety stock positioning in supply chains with stochastic lead times," Manufacturing & Service Operations Management, vol. 7, pp. 295-318, 2005.

S. C. Graves and S. P. Willems, "Supply chain design: safety stock placement and supply chain configuration," Handbooks in operations research and management science, vol. 11, pp. 95-132, 2003.

F. You and I. E. Grossmann, "Integrated multi‐echelon supply chain design with inventories under uncertainty: MINLP models, computational strategies," AIChE Journal, vol. 56, pp. 419-440, 2010.

Y. Cai, M. F. Zhang, and L. Huang, "Safety stock management based on lead time optimization," in Electric Technology and Civil Engineering (ICETCE), 2011 International Conference on, 2011, pp. 6150-6153.

B. Amirjabbari and N. Bhuiyan, "Determining supply chain safety stock level and location," Journal of Industrial Engineering and Management, vol. 7, pp. 42-71, 2014.

S. Sharma and A. Malhotra, "Safety stock calculations and inventory analysis: a practical approach for the FMCG case in a South-East Asian country," International Journal of Advanced Logistics, vol. 4, pp. 131-144, 2015.

K. E. Hernández, E. Olivares-Benítez, and C. A. Zuñiga, "Safety stock levels in modular product system using commonality and part families," IFAC-PapersOnLine, vol. 48, pp. 1387-1392, 2015.

B. Phruksaphanrat and T. Tanthatemee, "Fuzzy inventory control system for uncertain demand and supply," 2012.

H. R. Rezaei, "Developing an Intelligent Inventory Control Model, Applying Fuzzy Logic and Association Rule Mining," Paul Bharath Bhushan Petlu Chaylasy Gnophanxay, p. 41, 2012.

K. Funaki, "Strategic safety stock placement in supply chain design with due-date based demand," International Journal of Production Economics, vol. 135, pp. 4-13, 2012.

W. W. Nasr, M. K. Salameh, and L. Moussawi-Haidar, "Transshipment and safety stock under stochastic supply interruption in a production system," Computers & Industrial Engineering, vol. 63, pp. 274-284, 2012.

T. Tanthatemee and B. Phruksaphanrat, "Fuzzy inventory control system for uncertain demand and supply," in Proceedings of the international multiconference of engineers and computer scientists, 2012, pp. 1224-1229.

S. T. Klosterhalfen, D. Dittmar, and S. Minner, "An integrated guaranteed-and stochastic-service approach to inventory optimization in supply chains," European Journal of Operational Research, vol. 231, pp. 109-119, 2013.

Downloads

Published

2018-08-01

How to Cite

Al-fartoossy, R., Kassam, A., & Sabih, S. (2018). Study on the Criticism of the Safety Stock in Supply Chain Environment. International Journal of Sciences: Basic and Applied Research (IJSBAR), 40(2), 38–47. Retrieved from https://www.gssrr.org/index.php/JournalOfBasicAndApplied/article/view/9065

Issue

Section

Articles