Does inventory pooling improve customer service levels?

Meng Li, Jun Zhang

Research output: Contribution to journalArticlepeer-review

11 Scopus citations

Abstract

We study the risk pooling problem in a two-location inventory system, and analytically demonstrate that pooling improves the Type-I service levels at both locations. We also present an example showing that pooling may reduce the Type-II service levels at both locations.

Original languageEnglish (US)
Pages (from-to)96-98
Number of pages3
JournalOperations Research Letters
Volume40
Issue number2
DOIs
StatePublished - Mar 2012
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Software
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering
  • Applied Mathematics

Keywords

  • Inventory pooling
  • Service level
  • Transshipment

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