Risk and Safety Stock Management in Production Planning and Inventory Control with Stochastic Demand and Yield

  • Karl Inderfurth

Abstract

Production planning and inventory control is facing challenging risk management problems if it is confronted with uncertainties from both the demand and the process side. By analyzing the respective planning problems with methods of stochastic inventory control it is possible to gain remarkably deep insights into the way how optimal reorder and safety stock management responds to joint demand and yield risks. These insights can be exploited to assess and improve the simple type of risk management rules employed in MRP systems to cope with uncertainties in demand and production yield.

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Copyright information

© Deutscher Universitäts-Verlag/GWV Fachverlage GmbH, Wiesbaden 2006

Authors and Affiliations

  • Karl Inderfurth
    • 1
  1. 1.Lehrstuhl für Betriebswirtschaftslehre, insbesondere Produktion und LogistikOtto-von-Guericke-UniversitätMagdeburg

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