Lead-Time Reduction In A Stochastic Inventory System With Learning Consideration

Lead-Time Reduction In A Stochastic Inventory System With Learning Consideration. INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH, 41. pp. 571-579.

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We develop a continuous review inventory model where lead-time is considered as a controllable variable. Lead-time is decomposed into all its components: set-up time, processing time and non-productive time. These components reflect the setup cost reduction, lot size lead-time interaction and lead-time crashing, respectively. The learning effect in the production process is also included in the processing time component of the lead-time. The finite investment approach for lead-time and set-up cost reduction and their joint optimization, in addition to the lot size lead-time interaction, introduce a realistic direction in lead-time management and control. A numerical example and a sensitivity analysis are presented using the design of experiments to investigate the effect of the model parameters and, in particular, those related to the different lead-time components on the the expected total cost.

Item Type: Article
Subjects: Systems
Department: College of Computing and Mathematics > lndustrial and Systems Engineering
Date Deposited: 14 Jun 2008 11:05
Last Modified: 01 Nov 2019 13:44
URI: https://eprints.kfupm.edu.sa/id/eprint/2491