dc.creator | Liberopoulos, G. | en |
dc.date.accessioned | 2015-11-23T10:37:59Z | |
dc.date.available | 2015-11-23T10:37:59Z | |
dc.date.issued | 2008 | |
dc.identifier | 10.1016/j.ejor.2007.06.011 | |
dc.identifier.issn | 0377-2217 | |
dc.identifier.uri | http://hdl.handle.net/11615/30342 | |
dc.description.abstract | We investigate the tradeoff between finished-goods inventory and advance demand information for a model of a single-stage make-to-stock supplier who uses an order-base-stock replenishment policy to meet customer orders that arrive a fixed demand lead-time in advance of their due-dates. We show that if the replenishment orders arrive in the order that they are placed, then the tradeoff between the optimal order-base-stock level and the demand lead-time is "exhaustive", in the sense that the optimal order-base-stock level drops all the way to zero if the demand lead-time is sufficiently long. We then provide a sufficient condition under which this tradeoff is linear. We verify that this condition is satisfied for the case where the supply process is modeled as an M/M/1 queue. We also show that the tradeoff between the optimal order-base-stock level and the demand lead-time is linear for the case where the supply process is modeled as an M/D/1 queue. More specifically, for this case, we show that the optimal order-base-stock level decreases by one unit if the demand lead-time increases by an amount equal to the supplier's constant processing time. Finally, we show that the tradeoff between the optimal order-base-stock level and the demand lead-time is exhaustive but not linear in the case where the supply process is modeled as an M/D/infinity queue. We illustrate these results with a numerical example. (C) 2007 Elsevier B.V. All rights reserved. | en |
dc.source | European Journal of Operational Research | en |
dc.source.uri | <Go to ISI>://WOS:000255820700011 | |
dc.subject | production/inventory system | en |
dc.subject | make-to-stock queue | en |
dc.subject | advance demand | en |
dc.subject | information | en |
dc.subject | order-base-stock policy | en |
dc.subject | PRODUCTION/INVENTORY SYSTEMS | en |
dc.subject | SAFETY STOCK | en |
dc.subject | INFORMATION | en |
dc.subject | INVENTORIES | en |
dc.subject | FORECASTS | en |
dc.subject | EVOLUTION | en |
dc.subject | CAPACITY | en |
dc.subject | Management | en |
dc.subject | Operations Research & Management Science | en |
dc.title | On the tradeoff between optimal order-base-stock levels and demand lead-times | en |
dc.type | journalArticle | en |