Journal article

Finite time horizon fill rate analysis for multiple customer cases

B Abbasi, Z Hosseinifard, O Alamri, D Thomas, JP Minas

OMEGA-INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE | PERGAMON-ELSEVIER SCIENCE LTD | Published : 2018

Abstract

The item fill rate – defined as the fraction of demand that is immediately satisfied from on-hand stock – is commonly used as a performance measure in service level agreements between customers and suppliers. Under such agreements, the fill rate is measured over a finite horizon (the performance review period) and the supplier faces a financial penalty if an agreed target is not met. The distribution of the item fill rate (fill rate) determines the probability of exceeding the agreed target, it is therefore a point of interest in SLA coordination. The average finite horizon fill rate decreases with an increase in performance review period length. However, the impact of performance review per..

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University of Melbourne Researchers