¹Universidad Politécnica de Valencia, Valencia, Spain

Correspondence: M Cardós, Departamento de Organización de Empresas, Universidad Politécnica de Valencia, Camí de Vera s/n, 46071 Valencia, Spain. E-mail: mcardos@omp.upv.es

Received June 2005; Accepted September 2005; Published online 23 November 2005.

Abstract

This paper is focused on the exact calculation of the cycle service level for a generalized periodic review system accepting any discrete demand with a known probability function and any cycle service target. Previously, it was necessary to modify the definition of the cycle service level metric (also known as non stock out probability) so that it could be applied to these cases. The purpose of the proposed (R, S) system is to handle simultaneously fast-moving items, slow-moving items and intermittent or sporadic demand items any of them with high, medium or low cycle service targets.