Consider the item discussed in Approach 2 in Section 6.10.2. Recall that with var(L) = 0, the

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Consider the item discussed in Approach 2 in Section 6.10.2. Recall that with var(L) = 0, the reorder point is 457 units if P1 is 0.95. Now suppose the firm actually reduces the lead time by working with its supplier. Unfortunately, the reduced lead time is not always achieved. In particular, the lead time is 2 weeks half of the time, but remains at 4 weeks half

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Inventory And Production Management In Supply Chains

ISBN: 9781032179322

4th Edition

Authors: Edward A Silver, David F Pyke, Douglas J Thomas

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