| Article ID: | iaor20121629 |
| Volume: | 48 |
| Issue: | 3 |
| Start Page Number: | 652 |
| End Page Number: | 666 |
| Publication Date: | May 2012 |
| Journal: | Transportation Research Part E |
| Authors: | Schleyer Marc, Gue Kevin |
| Keywords: | inventory: order policies, simulation: analysis, distribution |
We develop discrete time models for the throughput time distribution of orders arriving to a one‐block warehouse. The models accommodate single‐ or multi‐line orders, and we show how to use them to determine the optimal batch size, given a desired probability of on‐time order fulfillment. Experiments suggest that the optimal batch size is slightly higher than one would choose if minimizing average throughput time.