Abstract

This paper considers speed and reliability, measured by the average and variance of the lead time, to examine the relevance of the latter variable on inventory costs. By using a flexible simulation framework, it is shown that reducing variability does not necessarily reduce costs and might in fact increase the costs of safety stock, depending on the shape of the demand distribution during lead time and the targeted service level. This offers a novel explanation for the wide variety of value of reliability figures obtained in empirical transport economics research.

Autore Pugliese

• Zamparini Luca

Tutti gli autori

• Dullaert W. , Zamparini L.

Titolo volume/Rivista

TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW

Anno di pubblicazione

2013

ISSN

1366-5545

ISBN

Non Disponibile

Numero di citazioni Wos

11

Ultimo Aggiornamento Citazioni

28/04/2018

Numero di citazioni Scopus

16

Ultimo Aggiornamento Citazioni

28/04/2018

Settori ERC

Non Disponibile

Codici ASJC

Non Disponibile