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The joint effect of leadtime variance and lot size in a parallel processing environment

Publication ,  Journal Article
Song, JS; Zipkin, PH
Published in: Management Science
January 1, 1996

We study a basic (r, q) system, in which the demand is a Poisson process and the leadtimes are independent, identically-distributed random variables. The key issue is the joint effect of the leadtime variance and the lot size q on performance. We know that, under a simple base-stock policy (with q = 1), the leadtime variance has no effect at all. We find here that, for larger q, the leadtime variance can have a significant adverse impact on performance. To explore this effect, we test two simple approximations. The simplest ignores the leadtime variance. The second approach is only a bit more complex; it captures the variance effect through a hybrid of two limiting approximations. Both methods provide useful information, but the second is more robust.

Duke Scholars

Published In

Management Science

DOI

ISSN

0025-1909

Publication Date

January 1, 1996

Volume

42

Issue

9

Start / End Page

1352 / 1363

Related Subject Headings

  • Operations Research
  • 46 Information and computing sciences
  • 38 Economics
  • 35 Commerce, management, tourism and services
  • 15 Commerce, Management, Tourism and Services
  • 08 Information and Computing Sciences
 

Citation

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Song, J. S., & Zipkin, P. H. (1996). The joint effect of leadtime variance and lot size in a parallel processing environment. Management Science, 42(9), 1352–1363. https://doi.org/10.1287/mnsc.42.9.1352
Song, J. S., and P. H. Zipkin. “The joint effect of leadtime variance and lot size in a parallel processing environment.” Management Science 42, no. 9 (January 1, 1996): 1352–63. https://doi.org/10.1287/mnsc.42.9.1352.
Song JS, Zipkin PH. The joint effect of leadtime variance and lot size in a parallel processing environment. Management Science. 1996 Jan 1;42(9):1352–63.
Song, J. S., and P. H. Zipkin. “The joint effect of leadtime variance and lot size in a parallel processing environment.” Management Science, vol. 42, no. 9, Jan. 1996, pp. 1352–63. Scopus, doi:10.1287/mnsc.42.9.1352.
Song JS, Zipkin PH. The joint effect of leadtime variance and lot size in a parallel processing environment. Management Science. 1996 Jan 1;42(9):1352–1363.

Published In

Management Science

DOI

ISSN

0025-1909

Publication Date

January 1, 1996

Volume

42

Issue

9

Start / End Page

1352 / 1363

Related Subject Headings

  • Operations Research
  • 46 Information and computing sciences
  • 38 Economics
  • 35 Commerce, management, tourism and services
  • 15 Commerce, Management, Tourism and Services
  • 08 Information and Computing Sciences