Using Nonlinear programming for Determining the Safety Stock Level in a Supply Chain with Various Channels and Levels

Abstract

Nowadays, inventory management has a significant importance in supply chain. In supply chain management literature, inventory control and minimizing inventory-related cost are a main challenges confronting the managers. One of the issues attracting the attention of most researchers is determining the level of safety stock in such a way that enables us to reach appropriate fill rate. In this paper, a non-linear model to determine the level of safety stock in different components of supply chain is presented with the aim of minimizing the safety stock-related cost.

Keywords

• supply chain
• safety stock
• nonlinear programming
• genocob iii