A Non-parametric Enhancement of the Fill Rate Estimation

Eugenia Babiloni ^[1] ; Ester Guijarro ^[1] ; Juan Ramon Trapero ^[2]
1. [1] Universidad Politécnica de Valencia
  
  Universidad Politécnica de Valencia
  
  Valencia, España
2. [2] Universidad de Castilla-La Mancha
  
  Universidad de Castilla-La Mancha
  
  Ciudad Real, España
Localización: Advances in engineering networks: proceedings of the 12th International Conference on Industrial Engineering and Industrial Management / Rodolfo de Castro Vila (ed. lit.), Gerusa Giménez Leal (ed. lit.), 2020, ISBN 978-3-030-44530-0, págs. 129-136
Idioma: inglés
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Resumen
- One of the main objectives of an inventory system consists of guarantee a target service level. However, classical approaches are based on assumptions that introduce significant errors. This fact can lead to design inventory policies that do not guarantee the achievement of the target service level. This paper suggests an expression to compute the fill rate for the continuous base-stock policy based on the classic derivation that neglects undershoots at the reorder point. Subsequently, the error incurred for neglecting the undershoots is calculated and corrected by means of the state-dependent parameter approach expressed in a state space framework. The results show that the empirical approach reduces the classic fill rate bias. Simulation is employed to corroborate these results.