An Inventory Model with Order Crossover

Xin X. He, Susan H. Xu, John Ord and Jack C. Hayya
Additional contact information
Xin X. He: South Carolina State University, Orangeburg, South Carolina
Susan H. Xu: Penn State University, University Park, Pennsylvania
Jack C. Hayya: Penn State University, University Park, Pennsylvania

Operations Research, 1998, vol. 46, issue 3-supplement-3, S112-S119

Abstract: In inventory systems with stochastic lead times, it is possible that more than a single order will be outstanding. In that case, orders may cross; that is, they may not be received in the same sequence in which they are placed. In this paper we develop a multicycle analysis for the case when lead times are independently and identically distributed. When contrasted with the conventional single cycle analysis, the multicycle approach provides a more accurate assessment of the overall inventory cost and leads to a superior inventory policy.

Keywords: Inventory/production; uncertainty; stochastic lead times; order crossover; noninterchangeability; Approximations; one cycle and multicycle analyses; policies; reorder point; order quantity (search for similar items in EconPapers)
Date: 1998
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Citations: View citations in EconPapers (20)

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