Name
Abstract | ||
|---|---|---|
This paper studies the trade-off between inventory levels and the delivery leadtime offered to customers in achieving a target level of service. It addresses the question of how much a delivery leadtime can be reduced, per unit increase in inventory, at a fixed fill rate. We show that for a class of assemble-to-order models with stochastic demands and production intervals there is a simple linear trade-off between inventory and delivery leadtime, in a limiting sense, at high fill rates. The limiting slope is easy to calculate and can be interpreted as the approximate marginal rate for trading off inventory against leadtime at a constant level of service. We also investigate how various model features affect the trade-off-in particular, the impact of orders for multiple units of a single item and of orders for multiple units of different items. |
Year | DOI | Venue |
|---|---|---|
1998 | 10.1287/opre.46.6.858 | Operations Research |
Keywords | Field | DocType |
delivery leadtime,multiple unit,inventory level,approximate marginal rate,constant level,fixed fill rate,high fill rate,simple linear trade-off,target level,assemble-to-order model,Assemble-To-Order Systems,Leadtime-Inventory Trade-Offs | Erlang distribution,Mathematical optimization,Level of service,Queue,Inventory control,Lead time,Trade offs,Mathematics,Operations management,Assemble-to-order system,Fill rate | Journal |
Volume | Issue | ISSN |
46 | 6 | 0030-364X |
Citations | PageRank | References |
39 | 5.54 | 8 |
Authors | ||
2 | ||
Name | Order | Citations | PageRank |
|---|---|---|---|
| Paul Glasserman | 1 | 496 | 95.86 |
| Yashan Wang | 2 | 43 | 6.18 |