Article ID: | iaor19991572 |
Country: | United Kingdom |
Volume: | 25 |
Issue: | 11 |
Start Page Number: | 1007 |
End Page Number: | 1012 |
Publication Date: | Nov 1998 |
Journal: | Computers and Operations Research |
Authors: | Moon Ilkyeong, Choi Sangjin |
There is a rapidly growing literature on modelling the effects of investment strategies to control givens such as setup time, setup cost, quality level and lead time. Recently, a continuous review inventory model with a mixture of backorders and lost sales in which both lead time and the order quantity are decision variables has been studied. The objectives of this paper are twofold. Firstly, we want to correct and improve the recently studied model by simultaneously optimizing both the order quantity and the reorder point. A significant amount of savings over the model can be achieved. We illustrate these savings by solving the same examples in the study. Secondly, we then develop a minimax distribution free procedure for the problem. Recently, there have been some studies on lead time reduction to provide more meaningful mathematical models to decision makers. Ouyang