The Dynamic Lot-Size Model with Stochastic Lead Times
AbstractOptimal solutions for the dynamic lot-sizing problem with deterministic demands but stochastic lead times are "lumpy." If lead time distributions are arbitrary except that they are independent of order size and do not allow orders to cross in time, then each order in an optimal solution will exactly satisfy a consecutive sequence of demands, a natural extension of the classic results by Wagner and Whitin. If, on the other hand, orders can cross in time, then optimal solutions are still "lumpy" in the sense that each order will satisfy a set, not necessarily consecutive, of the demands. An example shows how this characterization can be used to find a solution to a problem where interdependence of lead times is critical. This characterization of optimal solutions facilitates dynamic programming approaches to this problem.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by INFORMS in its journal Management Science.
Volume (Year): 30 (1984)
Issue (Month): 1 (January)
inventory/production: stochastic models; dynamic programming: applications;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Riezebos, Jan, 2006. "Inventory order crossovers," International Journal of Production Economics, Elsevier, vol. 104(2), pages 666-675, December.
- Rossi, Roberto & Tarim, S. Armagan & Hnich, Brahim & Prestwich, Steven, 2010. "Computing the non-stationary replenishment cycle inventory policy under stochastic supplier lead-times," International Journal of Production Economics, Elsevier, vol. 127(1), pages 180-189, September.
- Jans, R.F. & Degraeve, Z., 2005. "Modeling Industrial Lot Sizing Problems: A Review," Research Paper ERS-2005-049-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.