The safety stock and inventory cost paradox in a stochastic lead time setting
نویسندگان
چکیده
We study a stochastic lead-time problem motivated by real world global shipping data. Replenishment quantities are generated by the Order-Up-To policy which aims to achieve a strategic availability target. We show that unlike the constant lead-time case, minimum safety stocks do not always lead to minimum costs under stochastic lead-times.
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