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dc.contributor.authorNoblesse, Ann
dc.contributor.authorBoute, Robert
dc.contributor.authorLambrecht, Marc
dc.contributor.authorVan Houdt, Benny
dc.date.accessioned2017-12-02T14:52:47Z
dc.date.available2017-12-02T14:52:47Z
dc.date.issued2014
dc.identifier.doi10.1016/j.ijpe.2014.04.027
dc.identifier.urihttp://hdl.handle.net/20.500.12127/4973
dc.description.abstractTraditionally, lot sizing decisions in inventory management trade-off the cost of placing orders against the cost of holding inventory. However, when these lot sizes are to be produced in a finite capacity production/inventory system, the lot size has an important impact on the lead times, which in turn determine inventory levels (and costs). In this paper we study the lot sizing decision in a production/inventory setting, where lead times are determined by a queueing model that is linked endogenously to the orders placed by the inventory model. Assuming a continuous review (s, S) inventory policy, we develop a procedure to obtain the distribution of lead times and the distribution of inventory levels, when lead times are endogenously determined by the inventory model. This procedure allows to determine the optimal inventory parameters within the class of (s, S) policies that minimize the expected ordering and inventory related costs over time. We numerically show that ignoring the endogeneity of lead times may lead to inappropriate lot sizing decisions and significantly higher costs. This cost discrepancy is very outspoken if the lot size based on the economic order quantity deviates significantly from desirable production lot sizes. In these cases, the endogenous treatment of lead times is of particular importance.
dc.language.isoen
dc.subjectProduction/inventory System
dc.subjectLot Sizing
dc.subjectMarkov Chain Analysis
dc.titleLot sizing and lead time decisions in production/inventory systems
dc.identifier.journalInternational Journal of Production Economics
dc.source.volume155
dc.source.issueSeptember
dc.source.beginpage351
dc.source.endpage360
dc.contributor.departmentResearch Center for Operations Management, KU Leuven, Belgium
dc.contributor.departmentDepartment of Mathematics and Computer Science, University of Antwerp, Belgium
vlerick.knowledgedomainOperations & Supply Chain Management
vlerick.typearticleVlerick strategic journal article
vlerick.vlerickdepartmentTOM
dc.identifier.vperid102358
dc.identifier.vperid28093
dc.identifier.vperid144503
dc.identifier.vperid141247
dc.identifier.vpubid6061


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