Customer-Order Information, Leadtimes, and Inventories

Journal Article

We have an inventory to manage. The scenario is standard in all respects save one. Instead of arriving unannounced, customers provide advance warning of their demands. How should we use this information, and what is its effect on system performance? The answers turn out to be strikingly simple. There are very simple policies which perform effectively, in some cases optimally. Also such “demand leadtimes” improve performance, in precisely the same way that replenishment leadtimes degrade it.

Full Text

Duke Authors

Zipkin, Paul H.

Cited Authors

Hariharan, R; Zipkin, P

Published Date

October 1995

Published In

Management Science

Volume / Issue

41 / 10

Start / End Page

1599 - 1607

Published By

Institute for Operations Research and the Management Sciences (INFORMS)

Electronic International Standard Serial Number (EISSN)

1526-5501

International Standard Serial Number (ISSN)

0025-1909

Digital Object Identifier (DOI)

10.1287/mnsc.41.10.1599

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