The joint effect of leadtime variance and lot size in a parallel processing environment. (English) Zbl 0880.90033
Summary: We study a basic \((r,q)\) system, in which the demand is a Poisson process and the leadtimes are independent, identically-distributed random variables. The key issue is the joint effect of the leadtime variance and the lot size \(q\) on performance. We know that, under a simple basestock policy (with \(q=1\)), the leadtime variance has no effect at all. We find here that, for larger \(q\), the leadtime variance can have a significant adverse impact on performance.
To explore this effect, we test two simple approximations. The simplest ignores the leadtime variance. The second approach is only a bit more complex; it captures the variance effect through a hybrid of two limiting approximations. Both methods provide useful information, but the second is more robust.
To explore this effect, we test two simple approximations. The simplest ignores the leadtime variance. The second approach is only a bit more complex; it captures the variance effect through a hybrid of two limiting approximations. Both methods provide useful information, but the second is more robust.
MSC:
90B05 | Inventory, storage, reservoirs |