IDEAS home Printed from https://ideas.repec.org/a/pal/jorsoc/v53y2002i9d10.1057_palgrave.jors.2601354.html
   My bibliography  Save this article

Inventory models with fixed and variable lead time crash costs considerations

Author

Listed:
  • J C-H Pan

    (National Taiwan University of Science and Technology)

  • Y-C Hsiao

    (Hwa Hsia College of Technology and Commerce)

  • C-J Lee

    (National Taiwan University of Science and Technology)

Abstract

Most of the literature pertaining to inventory problems assumes lead time to be a prescribed parameter and thus not subject to control. In many practical situations, inventory lead time can be shortened at the expense of additional cost. Hence, the variable lead time can be regarded as a decision variable since it can be decomposed into several components, each having a crash cost function for the respective reduced lead time. However, in the related research each such crash cost is often treated only as a function of the reduced lead time. In this paper, crash cost is represented as a function of both the order quantity and the reduced lead time. An inventory model with normal demand is first presented and another model with unknown demand distribution is also discussed. Numerical examples are included to illustrate the procedures of the algorithms. These examples also show that the crash priority changes as the demand changes.

Suggested Citation

  • J C-H Pan & Y-C Hsiao & C-J Lee, 2002. "Inventory models with fixed and variable lead time crash costs considerations," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 53(9), pages 1048-1053, September.
    • Handle: RePEc:pal:jorsoc:v:53:y:2002:i:9:d:10.1057_palgrave.jors.2601354
    DOI: 10.1057/palgrave.jors.2601354
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/palgrave.jors.2601354
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/palgrave.jors.2601354?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Chang, Hung-Chi & Ouyang, Liang-Yuh & Wu, Kun-Shan & Ho, Chia-Huei, 2006. "Integrated vendor-buyer cooperative inventory models with controllable lead time and ordering cost reduction," European Journal of Operational Research, Elsevier, vol. 170(2), pages 481-495, April.
    2. Hayya, Jack C. & Harrison, Terry P. & He, X. James, 2011. "The impact of stochastic lead time reduction on inventory cost under order crossover," European Journal of Operational Research, Elsevier, vol. 211(2), pages 274-281, June.
    3. Chang, Ching-Ter, 2005. "A linearization approach for inventory models with variable lead time," International Journal of Production Economics, Elsevier, vol. 96(2), pages 263-272, May.
    4. Heydari, Jafar, 2014. "Lead time variation control using reliable shipment equipment: An incentive scheme for supply chain coordination," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 63(C), pages 44-58.
    5. Li, Yina & Xu, Xuejun & Zhao, Xiande & Yeung, Jeff Hoi Yan & Ye, Fei, 2012. "Supply chain coordination with controllable lead time and asymmetric information," European Journal of Operational Research, Elsevier, vol. 217(1), pages 108-119.

    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:pal:jorsoc:v:53:y:2002:i:9:d:10.1057_palgrave.jors.2601354. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    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.