The Effect of Commonality on Safety Stock in a Simple Inventory Model

Kenneth R. Baker
Kenneth R. Baker
The Amos Tuck School of Business Administration, Dartmouth College, Hanover, New Hampshire 03755
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,
Michael J. Magazine
Michael J. Magazine
Department of Management Sciences, University of Waterloo, Waterloo, Ontario, Canada
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,
Henry L. W. Nuttle
Henry L. W. Nuttle
Department of Industrial Engineering, North Carolina State University, Raleigh, North Carolina 27695
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Kenneth R. Baker

The Amos Tuck School of Business Administration, Dartmouth College, Hanover, New Hampshire 03755

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Michael J. Magazine

Department of Management Sciences, University of Waterloo, Waterloo, Ontario, Canada

Search for more papers by this author

Henry L. W. Nuttle

Department of Industrial Engineering, North Carolina State University, Raleigh, North Carolina 27695

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Published Online:1 Aug 1986https://doi.org/10.1287/mnsc.32.8.982

Abstract

We examine the effects of component commonality on optimal safety stock levels in a two-product, two-level inventory model. The criterion is to minimize system safety stock subject to a service level constraint. Although our model is specialized, its analysis provides insights not available in other multilevel inventory models.

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Volume 32, Issue 8

August 1986

Pages 909-1063

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Published Online:August 01, 1986

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Kenneth R. Baker, Michael J. Magazine, Henry L. W. Nuttle, (1986) The Effect of Commonality on Safety Stock in a Simple Inventory Model. Management Science 32(8):982-988.

https://doi.org/10.1287/mnsc.32.8.982

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The Effect of Commonality on Safety Stock in a Simple Inventory Model

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Volume 32, Issue 8

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