Article ID: | iaor20061535 |
Country: | Netherlands |
Volume: | 164 |
Issue: | 2 |
Start Page Number: | 354 |
End Page Number: | 357 |
Publication Date: | Jul 2005 |
Journal: | European Journal of Operational Research |
Authors: | Jodlbauer Herbert |
Keywords: | Little's law |
In this paper a mathematical definition of the input-weighted average lead-time for a general continuous inventory function is introduced. It is theoretically shown that the input-weighted average lead-time is equal to the ratio of average inventory to average input, or equivalently, average inventory to average output.