Implementing an exact estimation approach of the base stock for the periodic review policy based on fill rate

Abstract

Recent developments on the fill rate estimation in periodic review stock policies provide new techniques for setting up the stock policy parameters including exact procedures. However, the implementation of this method in real environments may be a difficult task due to issues such as the availability of demand data, the identification of an appropriate demand distribution pattern and the target fill rate established for each item according to a global target fill rate. This paper focuses on the modifications needed in the information management system of a company in order to implement an exact estimation procedure of the stock policies taking advantage of available data.