?
Improving the Inventory Management Efficiency Based on the Fill Rate Assessment and the Safety Stock Level
To enhance the efficiency of supply chain management, it is essen tial to reduce safety stock levels without compromising product availability. To achieve this objective, it was proposed to evaluate effectiveness of managerial decisions based on fill rate calculations. Fill rate is a common measure of the cus tomer service performance of inventory and is often presented as the percentage of units available when requested by the customer. The findings from several studies remain contentious; for instance, increasing the order quantity may offset a reduc tion in safety stock levels, or vice versa. Furthermore, our research reveals that existing approaches occasionally produce inexplicable outcomes, such as nega tive values for the fill rate or safety stock levels. The proposed approach adjusts existing methods based on the consideration of inventory management strategy with periodic or constant control period and proposes a methodology that allows managers to control the variable level of safety stock to maintain the desired value of the fill rate.