Article ID: | iaor200639 |
Country: | Netherlands |
Volume: | 163 |
Issue: | 3 |
Start Page Number: | 751 |
End Page Number: | 768 |
Publication Date: | Jun 2005 |
Journal: | European Journal of Operational Research |
Authors: | Dellaert N., Jeunet J. |
Keywords: | safety stock |
We study the impact of positive lead times on the multi-level lot-sizing problem in a rolling schedule environment, We show how stockout situations may arise even in a context of deterministic demand. We therefore develop a procedure to avoid such stockouts and we compare its performance through a simulation study to a safety stock strategy. Simulation results show the superiority of the proposed procedure.