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The effect of lead time and demand uncertainties in (r, q) inventory systems

Publication ,  Journal Article
Song, JS; Zhang, H; Hou, Y; Wang, M
Published in: Operations Research
January 1, 2010

We study a single-item (r, q) inventory system, where r is the reorder point and q is the order quantity. The demand is a compound-Poisson process. We investigate the behavior of the optimal policy parameters and the long-run average cost of the system in response to stochastically shorter or less-variable lead times. We show that although some of the properties of the base-stock system can be extended to this more general model, some cannot. The same findings also apply when the comparison is conducted on the lead-time demand distributions. © 2010 INFORMS.

Duke Scholars

Published In

Operations Research

DOI

EISSN

1526-5463

ISSN

0030-364X

Publication Date

January 1, 2010

Volume

58

Issue

1

Start / End Page

68 / 80

Related Subject Headings

  • Operations Research
  • 3507 Strategy, management and organisational behaviour
  • 1503 Business and Management
  • 0802 Computation Theory and Mathematics
  • 0102 Applied Mathematics
 

Citation

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MLA
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Song, J. S., Zhang, H., Hou, Y., & Wang, M. (2010). The effect of lead time and demand uncertainties in (r, q) inventory systems. Operations Research, 58(1), 68–80. https://doi.org/10.1287/opre.1090.0711
Song, J. S., H. Zhang, Y. Hou, and M. Wang. “The effect of lead time and demand uncertainties in (r, q) inventory systems.” Operations Research 58, no. 1 (January 1, 2010): 68–80. https://doi.org/10.1287/opre.1090.0711.
Song JS, Zhang H, Hou Y, Wang M. The effect of lead time and demand uncertainties in (r, q) inventory systems. Operations Research. 2010 Jan 1;58(1):68–80.
Song, J. S., et al. “The effect of lead time and demand uncertainties in (r, q) inventory systems.” Operations Research, vol. 58, no. 1, Jan. 2010, pp. 68–80. Scopus, doi:10.1287/opre.1090.0711.
Song JS, Zhang H, Hou Y, Wang M. The effect of lead time and demand uncertainties in (r, q) inventory systems. Operations Research. 2010 Jan 1;58(1):68–80.

Published In

Operations Research

DOI

EISSN

1526-5463

ISSN

0030-364X

Publication Date

January 1, 2010

Volume

58

Issue

1

Start / End Page

68 / 80

Related Subject Headings

  • Operations Research
  • 3507 Strategy, management and organisational behaviour
  • 1503 Business and Management
  • 0802 Computation Theory and Mathematics
  • 0102 Applied Mathematics