Coordinating lead times and safety stocks under autocorrelated demand

Coordinating lead times and safety stocks under autocorrelated demand

We consider a supply chain in which orders and lead times are linked endogenously, as opposed to assuming lead times are exogenous. This assumption is relevant when a retailer’s orders are produced by a supplier with finite capacity and replenished when the order is completed. The retailer faces demands that are correlated over time – either positively or negatively – which may, for example, be...

Capacity Expansion with Lead Times and Autocorrelated Random Demand

The combination of uncertain demand and lead times for installing capacity creates the risk of shortage during the lead time, which may have serious consequences for a service provider with dependent customers. This paper analyzes a model of capacity expansion with autocorrelated random demand and a fixed lead time for adding capacity. To provide a specified level of service, a discrete time ex...

Coordinating lead-time and safety stock decisions in a two-echelon supply chain with autocorrelated consumer demand

An integrated production planning model with load-dependent lead-times and safety stocks

The divergence over the years of research paradigms addressing the production planning problemhas led to the development of an extensive set of techniques, each of which can address a particular aspect of the practical problem and none of which provides a complete solution. In particular, most approaches fail to address the circular, non-linear dependency between resource utilization, lead-time...

Optimal Relief Order Quantity under Stochastic Demand and Lead-time

In this paper, a newsboy model is developed under uniformly distributed lead-time and demand that is an appropriate assumption in obtaining optimal relief inventory of humanitarian disasters. It is noteworthy that limited historical data are in hand on relief operations. Hence, analytical and approximate solutions for optimal relief order quan­tity were derived. The effect of lead-time uncertai...