The safety stock paradox

Research output: Contribution to journalComment / DebateOtherpeer-review

2 Citations (Scopus)

Abstract

When determining reorder levels for inventory systems, results involving negative safety stocks are often obtained. Such results, although they can be rationalized, are counterintuitive in the sense that safety stocks are meant to be additional stocks held as a buffer against the effects of uncertain conditions and should therefore always be nonnegative. This paradox is examined in the paper and resolved by demonstrating that the accepted definition of safety stock understates the actual increase in stock to meet uncertain conditions.

Original languageEnglish
Pages (from-to)472-474
Number of pages3
JournalIIE Transactions (Institute of Industrial Engineers)
Volume19
Issue number4
DOIs
Publication statusPublished - 1 Jan 1987

Cite this

@article{2758e99e74454de8984721307147c786,
title = "The safety stock paradox",
abstract = "When determining reorder levels for inventory systems, results involving negative safety stocks are often obtained. Such results, although they can be rationalized, are counterintuitive in the sense that safety stocks are meant to be additional stocks held as a buffer against the effects of uncertain conditions and should therefore always be nonnegative. This paradox is examined in the paper and resolved by demonstrating that the accepted definition of safety stock understates the actual increase in stock to meet uncertain conditions.",
author = "Snyder, {R. D.}",
year = "1987",
month = "1",
day = "1",
doi = "10.1080/07408178708975423",
language = "English",
volume = "19",
pages = "472--474",
journal = "IIE Transactions (Institute of Industrial Engineers)",
issn = "0740-817X",
publisher = "Taylor & Francis",
number = "4",

}

The safety stock paradox. / Snyder, R. D.

In: IIE Transactions (Institute of Industrial Engineers), Vol. 19, No. 4, 01.01.1987, p. 472-474.

Research output: Contribution to journalComment / DebateOtherpeer-review

TY - JOUR

T1 - The safety stock paradox

AU - Snyder, R. D.

PY - 1987/1/1

Y1 - 1987/1/1

N2 - When determining reorder levels for inventory systems, results involving negative safety stocks are often obtained. Such results, although they can be rationalized, are counterintuitive in the sense that safety stocks are meant to be additional stocks held as a buffer against the effects of uncertain conditions and should therefore always be nonnegative. This paradox is examined in the paper and resolved by demonstrating that the accepted definition of safety stock understates the actual increase in stock to meet uncertain conditions.

AB - When determining reorder levels for inventory systems, results involving negative safety stocks are often obtained. Such results, although they can be rationalized, are counterintuitive in the sense that safety stocks are meant to be additional stocks held as a buffer against the effects of uncertain conditions and should therefore always be nonnegative. This paradox is examined in the paper and resolved by demonstrating that the accepted definition of safety stock understates the actual increase in stock to meet uncertain conditions.

UR - http://www.scopus.com/inward/record.url?scp=0023535882&partnerID=8YFLogxK

U2 - 10.1080/07408178708975423

DO - 10.1080/07408178708975423

M3 - Comment / Debate

VL - 19

SP - 472

EP - 474

JO - IIE Transactions (Institute of Industrial Engineers)

JF - IIE Transactions (Institute of Industrial Engineers)

SN - 0740-817X

IS - 4

ER -