Inventory Management with Variable Lead-Time Dependent Procurement Cost
Omega: the International Journal of Management Science 2008
Charu Chadra, Jānis Grabis

A reduction in the inventory replenishment lead-time allows reducing safety stock requirements and improving customer service. However, it might be accompanied by increased procurement costs because of premium charges imposed by suppliers, or higher transportation costs. This paper studies a single-stage variable lead-time inventory system with lead-time dependent procurement cost. Selection of the lead-time value represents finding the trade-off between benefits of lead-time reduction and increase in the procurement cost. A model for joint optimization of inventory and procurement costs is developed. Numerical studies are conducted to identify conditions under which lead-time reduction is favorable compared to procuring at the lowest cost.


Atslēgas vārdi
Inventory control; Variable lead-time; Sensitivity analysis
DOI
10.1016/j.omega.2006.04.009
Hipersaite
http://www.sciencedirect.com/science/article/pii/S0305048306000399

Chadra, C., Grabis, J. Inventory Management with Variable Lead-Time Dependent Procurement Cost. Omega: the International Journal of Management Science, 2008, Vol.36, Iss.5, 877.-887.lpp. ISSN 0305-0483. Pieejams: doi:10.1016/j.omega.2006.04.009

Publikācijas valoda
English (en)
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