Safety Stock Optimization under Lead Time Ambiguity

• 영문명: Safety Stock Optimization under Lead Time Ambiguity
• 발행기관: People & Global Business Association
• 저자명: 김종근(Chong Keun Kim) 김판수(Pansoo Kim) Joon Yeop Kwon
• 간행물 정보: 『Global Business and Finance Review』Vol.27 No.5, 55~64쪽, 전체 10쪽
• 주제분류: 경제경영 > 경영학
• 파일형태: PDF
• 발행일자: 2022.10.31

영문 초록

Purpose: The purpose of this study is to investigate how ambiguity faced by the risk-neutral manager affects the firm’s optimal level of safety stock. Design/methodology/approach: This study adopts the traditional model of Arrow et al. (1951) and employ a manager who has multiple prior beliefs about the probability distribution of the lead time. Findings: This study finds that facing lead time ambiguity, the manager becomes more conservative when choosing the optimal stock level to hold and the amount of safety stock. Research limitations/implications: The future research would consider a risk-averse manager who could be compensated or punished as a result of stock management. Then the future research would examine the interactive effects of the manager’s risk aversion and lead time ambiguity on the optimal safety stock level. Originality/value: This would be the first study that investigates the effects of ambiguity on the level of safety stock.

목차

I. Introduction

II. The Model

III. Optimal Safety Stock

IV. Numerical Implications

V. Concluding Remarks

References

키워드

ambiguity safety stock stochastic lead time