IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v16y1969i2pb61-b76.html
   My bibliography  Save this article

The Effect of Reducing Leadtime on Inventory Levels-Simulation Analysis

Author

Listed:
  • Donald Gross

    (The George Washington University)

  • A. Soriano

    (Air Reduction Company, Murray Hill, New Jersey)

Abstract

The allowed safety stock level reduction and accompanying reduction in average on-shelf inventory level are evaluated, for prescribed system performance requirements, as a function of mean leadtime reduction. The general simulation technique developed for this purpose allows the treatment of the s, S periodic review inventory problem with both demands and leadtime being stochastic. Some results obtained for a military supply system, where the reduction in leadtime is achieved by resorting to airlift rather than sealift, are presented. In addition, generalizations as to the effect of certain parameters on the reductions allowable for general situations are given. Finally, a simplified means of predicting these effects by an empirical method is indicated.

Suggested Citation

  • Donald Gross & A. Soriano, 1969. "The Effect of Reducing Leadtime on Inventory Levels-Simulation Analysis," Management Science, INFORMS, vol. 16(2), pages 61-76, October.
    • Handle: RePEc:inm:ormnsc:v:16:y:1969:i:2:p:b61-b76
    DOI: 10.1287/mnsc.16.2.B61
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.16.2.B61
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.16.2.B61?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hua, N. Grace & Willems, Sean P., 2016. "Optimally configuring a two-stage serial line supply chain under the guaranteed service model," International Journal of Production Economics, Elsevier, vol. 181(PA), pages 98-106.
    2. Ruud Heuts & Jan de Klein, 1995. "An (s, q) inventory model with stochastic and interrelated lead times," Naval Research Logistics (NRL), John Wiley & Sons, vol. 42(5), pages 839-859, August.
    3. Vernimmen, Bert & Dullaert, Wout & Willemé, Peter & Witlox, Frank, 2008. "Using the inventory-theoretic framework to determine cost-minimizing supply strategies in a stochastic setting," International Journal of Production Economics, Elsevier, vol. 115(1), pages 248-259, September.
    4. Jian, Ming & Fang, Xin & Jin, Liu-qian & Rajapov, Azamat, 2015. "The impact of lead time compression on demand forecasting risk and production cost: A newsvendor model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 84(C), pages 61-72.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:16:y:1969:i:2:p:b61-b76. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.