The safety stock and inventory cost paradox in a stochastic lead time setting

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.

Preview

PDF - Accepted Post-Print Version Download (293kB) | Preview

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)
Date Type:	Completion
Status:	Published
Schools:	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

Actions (repository staff only)

Edit Item