The safety stock syndrome

Research output: Contribution to journalArticleResearchpeer-review

17 Citations (Scopus)

Abstract

This paper investigates the role of safety stocks in fixed order quantity-reorder point inventory systems. A common confusion over the notion of a shortage probability is shown to lead to methods which encourage excessive safety stocks. An alternative approach, proposed by R. G. Brown, is validated under quite general demand conditions. When combined with a numerical example, it is shown that negative safety stocks may be the rational response to the problem of uncertain demands, even when high levels of service are required.

Original languageEnglish
Pages (from-to)833-837
Number of pages5
JournalJournal of the Operational Research Society
Volume31
Issue number9
DOIs
Publication statusPublished - 1 Jan 1980

Cite this

@article{55aaac4e69074e038ca06ecfae88f1be,
title = "The safety stock syndrome",
abstract = "This paper investigates the role of safety stocks in fixed order quantity-reorder point inventory systems. A common confusion over the notion of a shortage probability is shown to lead to methods which encourage excessive safety stocks. An alternative approach, proposed by R. G. Brown, is validated under quite general demand conditions. When combined with a numerical example, it is shown that negative safety stocks may be the rational response to the problem of uncertain demands, even when high levels of service are required.",
author = "Snyder, {Ralph D.}",
year = "1980",
month = "1",
day = "1",
doi = "10.1057/jors.1980.150",
language = "English",
volume = "31",
pages = "833--837",
journal = "Journal of the Operational Research Society",
issn = "0160-5682",
publisher = "Palgrave Macmillan",
number = "9",

}

The safety stock syndrome. / Snyder, Ralph D.

In: Journal of the Operational Research Society, Vol. 31, No. 9, 01.01.1980, p. 833-837.

Research output: Contribution to journalArticleResearchpeer-review

TY - JOUR

T1 - The safety stock syndrome

AU - Snyder, Ralph D.

PY - 1980/1/1

Y1 - 1980/1/1

N2 - This paper investigates the role of safety stocks in fixed order quantity-reorder point inventory systems. A common confusion over the notion of a shortage probability is shown to lead to methods which encourage excessive safety stocks. An alternative approach, proposed by R. G. Brown, is validated under quite general demand conditions. When combined with a numerical example, it is shown that negative safety stocks may be the rational response to the problem of uncertain demands, even when high levels of service are required.

AB - This paper investigates the role of safety stocks in fixed order quantity-reorder point inventory systems. A common confusion over the notion of a shortage probability is shown to lead to methods which encourage excessive safety stocks. An alternative approach, proposed by R. G. Brown, is validated under quite general demand conditions. When combined with a numerical example, it is shown that negative safety stocks may be the rational response to the problem of uncertain demands, even when high levels of service are required.

UR - http://www.scopus.com/inward/record.url?scp=84974859744&partnerID=8YFLogxK

U2 - 10.1057/jors.1980.150

DO - 10.1057/jors.1980.150

M3 - Article

VL - 31

SP - 833

EP - 837

JO - Journal of the Operational Research Society

JF - Journal of the Operational Research Society

SN - 0160-5682

IS - 9

ER -