Fill rate estimation in periodic review policies with lost sales using simple methods
Abstract: The exact estimation
of the fill rate in the lost sales case is complex and time consuming. However,
simple and suitable methods are needed for its estimation so that inventory
managers could use them.
Design/methodology/approach: Instead of trying to compute the fill rate
in one step, this paper focuses first on estimating the probabilities of
different on-hand stock levels so that the fill rate is computed later.
Findings: As a result, the performance of a novel proposed method
overcomes the other methods and is relatively simple to compute.
Originality/value: Existing methods for estimating stock levels are
examined, new procedures are proposed and their performance is assessed.
Author: Manuel Cardós, Ester
Guijarro Tarradellas, Eugenia Babiloni Griñón
Journal Code: jptindustrigg160045
