Development of a safety stock optimization model with high demand uncertainties for Winery Supply Chains (WSCs)

This paper is framed on one of the important decisions in Inventory Optimization (IO), optimizing the “excess” inventory, the safety stocks in Winery Supply Chains (WSCs). The developed generic mixed integer safety stock optimization model integrates selected external (tax rates, inflation and time value of money) and internal (amelioration of wine) characteristics of WSCs together with high demand uncertainties specific to WSCs. As a result, the generic, mixed integer safety stock optimization model, with high demand uncertainties would enable the WSCs achieve higher performance leading to competitive advantage.