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《Industrial Engineering Journal》 2014-01
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A Study of the Method to Improve On-Time Delivery Rate Based on Safety Stock Strategy

Jiang Ai-ping;Gao Jun-jun;Sydney Institute of Language and Commerce,Shanghai University;  
To meet the requirements of clients,dealers producing non-core parts of computers frequently depend on vast inventories or overtime production,which has presented a problem from potential uncertainties in the supply chains of computer production.Furthermore,the on-time delivery rate(ODR) inevitably ascends when the dealers for non-core parts are out of stock.To decrease uncertainties of the supply chain for computers parts production,an innovative method is proposed to improve on-time delivery rate,based on the safety stock(SS) strategy.Firstly,with the consideration of imaginable certainties and uncertainties,the demand of new computers is calculated for the optimal safety stock factor by means of mathematical deduction.Then,the quantity of safety stock is available with the safety stock factor and the demand for computers.If the demand for computers is lower than the quantity of safety stock,the demand can be immediately met,or additional parts of computers should be produced by the suppliers before the delivery.Eventually,an annual average stock formula is demonstrated considering the uncertainty in demand estimation.In an empirical analysis,comparing with MTO(make-to-order) method,the new method can increase stock turnover velocity five or six times higher than in the past.Additionally,the unit inventory carrying cost will reduce by 14%and the on-time delivery rate increase by approximately 80%.
【Fund】: 国家自然科学基金资助项目(71302053);; 上海大学教育教学改革研究资助项目(B.58-A107-11-524)
【CateGory Index】: F273
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