Tuning Min–Max: Cost Versus Service for Six (s,S) Settings
This lesson is part of the course
In this lesson
You price six min–max settings that were simulated over the same year, calculate their fill rates and pick the cheapest setting that still meets the service target.
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Lessons in this course
- Three Ways to Reorder: Continuous (s,Q), Periodic (R,S) and Min–Max (s,S) Locked
- The Order-Up-To Level: Demand Over R + L Plus Safety Stock Locked
- Choosing the Review Period: Ordering Cost Against Holding Cost Locked
- Inventory Position: On Hand + On Order − Backorders, and the Order at Each Review Locked
- A 52-Week Simulation: Arrivals After the Lead Time, Net Stock and the Pipeline Locked
- Service Measures: Stock-Out Weeks, Fill Rate and Average Stock Locked
- Tuning Min–Max: Cost Versus Service for Six (s,S) Settings Locked
- Joint Replenishment: One Supplier, a Common Review Day and a Minimum Order Value Locked