Disney, Stephen Michael ORCID: https://orcid.org/0000-0003-2505-9271, Maltz, Arnold, Wang, Xun and Warburton, Roger 2015. The safety stock and inventory cost paradox in a stochastic lead time setting. Presented at: 26th Production and Operations Management Society Annual Conference, Washington, WA, 8-11 May 2015. |
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Official URL: http://www.pomsmeetings.org/ConfPapers/060/060-060...
Abstract
We study a stochastic lead-time problem motivated by real world global shipping data. Replenishment quantities are generated by the Order-Up-To policy which aims to achieve a strategic availability target. We show that unlike the constant lead-time case, minimum safety stocks do not always lead to minimum costs under stochastic lead-times.
Item Type: | Conference or Workshop Item (Paper) |
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Date Type: | Completion |
Status: | Published |
Schools: | Business (Including Economics) |
Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management |
Uncontrolled Keywords: | order up to policy, stochastic lead time, order crossover |
Date of First Compliant Deposit: | 30 March 2016 |
Last Modified: | 27 Oct 2022 10:28 |
URI: | https://orca.cardiff.ac.uk/id/eprint/70564 |
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