Show simple item record

dc.contributor.authorDisney, SM
dc.contributor.authorMaltz, A
dc.contributor.authorWang, X
dc.contributor.authorWarburton, RDH
dc.date.accessioned2019-09-10T09:03:56Z
dc.date.issued2015-07-26
dc.description.abstractWe study the impact of stochastic lead times with order crossover on inventory costs and safety stocks in the order-up-to (OUT) policy. To motivate our research we present global logistics data which violates the traditional assumption that lead time demand is normally distributed. We also observe that order crossover is a common and important phenomenon in real supply chains. We present a new method for determining the distribution of the number of open orders. Using this method we identify the distribution of inventory levels when orders and the work-in-process are correlated. This correlation is present when demand is auto-correlated, demand forecasts are generated with non-optimal methods, or when certain ordering policies are present. Our method allows us to obtain exact safety stock requirements for the so-called proportional order-up-to (POUT) policy, a popular, implementable, linear generalization of the OUT policy. We highlight that the OUT replenishment policy is not cost optimal in global supply chains, as we are able to demonstrate the POUT policy always outperforms it under order cross-over. We show that unlike the constant lead-time case, minimum safety stocks and minimal inventory variance do not always lead to minimum costs under stochastic lead-times with order crossover. We also highlight an interesting side effect of minimizing inventory costs under stochastic lead times with order crossover with the POUT policy - an often significant reduction in the order variance.en_GB
dc.identifier.citationVol. 248 (2), pp. 473 - 486en_GB
dc.identifier.doi10.1016/j.ejor.2015.07.047
dc.identifier.urihttp://hdl.handle.net/10871/38625
dc.language.isoenen_GB
dc.publisherElsevieren_GB
dc.rights© 2015. This version is made available under the CC-BY-NC-ND 4.0 license: https://creativecommons.org/licenses/by-nc-nd/4.0/  en_GB
dc.subjectStochastic lead-timesen_GB
dc.subjectSafety stocken_GB
dc.subjectOrder cross-overen_GB
dc.subjectOrder-up-to policyen_GB
dc.subjectGlobal supply chainsen_GB
dc.titleInventory management for stochastic lead times with order crossoversen_GB
dc.typeArticleen_GB
dc.date.available2019-09-10T09:03:56Z
dc.identifier.issn0377-2217
dc.descriptionThis is the author accepted manuscript. The final version is available from Elsevier via the DOI in this recorden_GB
dc.identifier.journalEuropean Journal of Operational Researchen_GB
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/  en_GB
dcterms.dateAccepted2015-07-20
rioxxterms.versionAMen_GB
rioxxterms.licenseref.startdate2015-07-26
rioxxterms.typeJournal Article/Reviewen_GB
refterms.dateFCD2019-09-10T09:02:01Z
refterms.versionFCDAM
refterms.dateFOA2019-09-10T09:03:59Z
refterms.panelCen_GB


Files in this item

This item appears in the following Collection(s)

Show simple item record

© 2015. This version is made available under the CC-BY-NC-ND 4.0 license: https://creativecommons.org/licenses/by-nc-nd/4.0/  
Except where otherwise noted, this item's licence is described as © 2015. This version is made available under the CC-BY-NC-ND 4.0 license: https://creativecommons.org/licenses/by-nc-nd/4.0/