Lot size dependent lead times in a Q,R inventory system

Kim, J. S.; Benton, W. C.

doi:10.1080/00207549508930136

Cited by 46 publications

(26 citation statements)

References 2 publications

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“…Thus, with a decreasing lot size, lead time is shortened, which leads to a lower demand uncertainty and a lower safety stock for a given order frequency. The interrelations described by Kim and Benton (1995) are also valid for the model developed in this paper.…”

Section: Effects Of the Decision Variables On The Safety Stock And Riskmentioning

confidence: 71%

“…The impact of a variation of Q on the level of safety stock kept at the buyer for the case of a lot size-dependent lead time has been analysed by Kim and Benton (1995). The authors differentiated between an order frequency effect and a lead time effect: The order frequency effect refers to the fact that a reduction in Q leads to an increase in the order frequency D/Q, which in turn exposes the system to the risk of stockouts more often.…”

Section: Effects Of the Decision Variables On The Safety Stock And Riskmentioning

confidence: 99%

“…This functional form is representative for (serial) production processes where each product is manufactured individually and may be transported to the subsequent stage or the customer after its completion (note that this scenario is studied in many papers, see e.g. Kim and Benton, 1995;Ben-Daya and Hariga, 2004;Hsiao 2008;Glock 2009, In Press a, among others). However, we note that other production processes might be associated with different functional forms, such as a step-wise lead time-function for example, which could be representative for production processes where each batch needs a certain production time regardless of the number of units in the batch, for instance in case products are heated in an oven or treated in an immersion bath.…”

Section: Problem Descriptionmentioning

confidence: 99%

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Reducing lead time risk through multiple sourcing: the case of stochastic demand and variable lead time

Glock

Ries

2013

International Journal of Production Research

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This is the accepted version of the paper.This version of the publication may differ from the final published version. Abstract: This paper studies a buyer sourcing a product from multiple suppliers under stochastic demand. The buyer uses a (Q,s) continuous review, reorder point, order quantity inventory control system to determine the size and timing of orders. Lead time is assumed to be deterministic and to vary linearly with the lot size, wherefore lead time and the associated stockout risk may be influenced both by varying the lot size and the number of contracted suppliers. This paper presents mathematical models for a multiple supplier single buyer integrated inventory problem with stochastic demand and variable lead time and studies the impact of the delivery structure on the risk of incurring a stockout during lead time. Permanent

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Section: Effects Of the Decision Variables On The Safety Stock And Riskmentioning

confidence: 71%

Section: Effects Of the Decision Variables On The Safety Stock And Riskmentioning

confidence: 99%

Section: Problem Descriptionmentioning

confidence: 99%

See 1 more Smart Citation

Reducing lead time risk through multiple sourcing: the case of stochastic demand and variable lead time

Glock

Ries

2013

International Journal of Production Research

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“…Hoque and Goyal [7] developed an optimal solution procedure for the singlevendor single-buyer production-inventory structure with uneven and equal sized shipments from the seller to the consumer and under the capacity restriction of the transport tackle. This supposition is questioned by Kim and Benton [10] and considered the effect of lot size on lead time and safety stock. Kim and Benton [10] established a linear association between lead time and lot size based on explanation of Karmarkar [9].…”

Section: Literature Reviewmentioning

confidence: 99%

“…This supposition is questioned by Kim and Benton [10] and considered the effect of lot size on lead time and safety stock. Kim and Benton [10] established a linear association between lead time and lot size based on explanation of Karmarkar [9]. They included this lead time lot size relation into the classical probabilistic continuous review (Q, r) model.…”

Section: Literature Reviewmentioning

confidence: 99%

Single vendor-buyer integrated inventory system for imperfect production with variable lead time

Uthayakumar¹,

Kumar²

2016

ORAJ

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In this paper, the authors considered the single vendor single buyer integrated production inventory problem with stochastic demand for an imperfect production process. They relax the assumption that, the lead time is varying linearly with the lot size. That is, the lead time is composed of a lot size dependent run time and constant delay times such as moving, waiting and setup times. A solution procedure is mentioned for solving the proposed model and numerical examples are used to illustrate the benefit of integration. A sensitivity analysis is also performed to explore the effect of key parameter D (demand). A simple procedure is suggested to obtain an approximate solution of the proposed model. Examples are used toillustrate the model and explore the effect of important parameters on the production schedule and total expected cost.

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