| Article ID: | iaor1998574 |
| Country: | United States |
| Volume: | 44 |
| Issue: | 5 |
| Start Page Number: | 473 |
| End Page Number: | 483 |
| Publication Date: | Aug 1997 |
| Journal: | Naval Research Logistics |
| Authors: | Myers Danny C. |
| Keywords: | quality & reliability, marketing |
This article addresses a common misconception concerning production lead time and the use of inventory to meet seasonal demand for products with limited shelf lives. Two fundamental questions are answered: (1) Under what conditions will an increase in product life lead to increased ability to meet demand? (2) Under what conditions will increased levels of starting inventory be beneficial? The results of this analysis assisted a plastics manufacturing firm in making product pricing and inventory decisions.