Consequences of order crossover in (s, Q) inventory systems under stochastic environment
نویسندگان
چکیده
This paper discusses the issue of order crossover and its effects in order point, lot size (s, Q) inventory systems. Orders are likely to cross when their lead times are stochastic. Two inventory systems are considered to examine the consequences of order crossover. The first inventory system considers a fast moving item having deterministic demand and stochastic lead time. It is assumed lead time demand follows Normal distribution. The second inventory system considers a slow moving inventory item having stochastic lead time and demand during lead time follows a Laplace distribution. The order crossover phenomenon is studied in both systems. Numerical problems are also considered to demonstrate the results. A sensitivity analysis is done to examine the effect of order crossover with change in variance of lead time demand on total cost, lot size and safety stock factor in both systems.
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