Article ID: | iaor20001350 |
Country: | United Kingdom |
Volume: | 29 |
Issue: | 2 |
Start Page Number: | 138 |
End Page Number: | 151 |
Publication Date: | Jan 1999 |
Journal: | International Journal of Physical Distribution & Logistics Management |
Authors: | Namit Kal, Chen Jim |
Keywords: | distribution |
Studies have shown (1) that a company that ignores lead-time demand variability may suffer great financial damage, (2) that the gamma distribution provides the most common best fit to lead-time demand for a variety of inventory items, and (3) that a fixed lead-time demand assumption or a normal approximation to it will often yield significant errors because the true distribution is usually very much skewed to the right. Unfortunately, all of the methods for solving the