A simulation model to validate and evaluate the adequacy of an analytical expression for proper safety stock sizing

Author

Garcia, Eduardo Saggioro ; Silva, Caio Fiuza ; Saliby, Eduardo

Author_Institution

Dept. of Ind. Eng., Univ. Fed. do Rio de Janeiro, Brazil

Volume

2

fYear

2002

fDate

8-11 Dec. 2002

Firstpage

1282

Abstract

The purpose of this paper is to validate and test the adequacy of an analytical expression to calculate proper safety stock levels using simulation techniques. The model refers to a periodic review system and a lot-4-lot replenishment policy, with randomness in forecast errors and in order fulfillment. The simulation model is formulated in a spreadsheet environment using MS Excel^® and @Risk^®. The percentage of periods without stockout is computed and compared to the theoretical value expected by the assumptions inherent to the analytical expression.

Keywords

digital simulation; spreadsheet programs; stock control data processing; @Risk; MS Excel; analytical expression; forecast errors; lot-4-lot replenishment policy; order fulfillment; periodic review system; proper safety stock sizing; randomness; simulation model; spreadsheet environment; stockout; Analytical models; Computational modeling; Costs; Customer service; Demand forecasting; Industrial engineering; Predictive models; Safety; Testing; Uncertainty;

fLanguage

English

Publisher

ieee

Conference_Titel

Simulation Conference, 2002. Proceedings of the Winter

Print_ISBN

0-7803-7614-5

Type

conf

DOI

10.1109/WSC.2002.1166389

Filename

1166389