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Abstract

Stock allocation in a distribution supply chain (DSC) means that the warehouse has to determine quantities of the available stock to be delivered to each retailer. Different allocation rules have been developed with various aims. In this paper, a new fuzzy-logic-based decision-making system for stock allocation (DMS_SA) is presented, and the objective is to achieve the target DSC fill rate whilst incurring an acceptable total holding cost, or to achieve the target holding cost whilst with a certain level of fill rate. It is shown how DMS_SA can be extended to be applied to a multi-echelon DSC. Copyright © 2007 John Wiley & Sons, Ltd.