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.

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 t...

the probable lack of some arcs and nodes in the stochastic networks is considered in this paper, and its effect is shown as the arrival probability from a given source node to a given sink node. a discrete time markov chain with an absorbing state is established in a directed acyclic network. then, the probability of transition from the initial state to the absorbing state is computed. it is as...

Supply chain is an accepted way of remaining in the competition in today's rapidly changing market. This paper presents a coordinated seller-buyer supply chain model in two stages, which is called Joint Economic Lot Sizing (JELS) in literature. The delivery activities in the supply chain consist of a single raw material. We assume that the delivery lead time is stochastic and follows an exponen...

We study the impact of the efforts aimed at reducing the lead-time variability in a quality-adjusted stochastic inventory model. We assume that each lot contains a random number of defective units. More specifically, a logarithmic investment function is used that allows investment to be made to reduce lead-time variability. Explicit results for the optimal values of decision variables as well a...

This paper establishes a new price-sensitive demand model which considers stochastic disturbance similar to ARMA(1,1) model. We examine the impact of two forecasting methods on the bullwhip effect in a two-stage supply chain with two retailers. It is assumed that two retailers face the same demand model and an order-up-to inventory policy is employed. The lead-time demand is forecasted respecti...