The study analyzes those relations of customer service level of each sales branch, level of cooperations among branches, and overall system-wide service level for an item. Under the continuous review method, each sales branch places an order to the outside supplier, and the each branch receives the order quantity after elapsing a certain lead time. Under these circumstances, those branches with stockout condition may be supplied by other branches with keeping stocks to cover the shortages. This policy generally increases the system-wide customer service level for an item throughout cooperations for the safety plan among branches. Therefore, in the context of inventory policy, the decision rules to determine the proper branch levels of service and cooperation levels of service are important goals in terms of attaining desired system-wide service level. This research has suggested the method and procedure to reach above goals.

• 윤승철 | Yoon, Seung-Chul
• 민지영 | Min, Ji-Young