Inventory control in environments with short lead times
International Journal of Physical Distribution & Logistics Management
ISSN: 0960-0035
Article publication date: 20 March 2007
Abstract
Purpose
The objective of this study is to revise and enhance existing inventory control models in a way that allows them to be used more efficiently in environments with short lead times.
Design/methodology/approach
A simulation approach has been chosen to assess the efficiency of the developed model. This simulation is based on randomly generated demand data with a compound Poisson type of distribution.
Findings
Results from the simulation show that traditionally used inventory control methods fail to ensure that desired service levels are attained in environments with short lead times. The simulation also shows that, by using the developed model, the differences between desired and attained service levels can be reduced to fall within limits acceptable in practice.
Originality/value
The study provides an enhanced inventory control model that can be used in environments with short lead time to increase service level performance.
Keywords
Citation
Mattsson, S. (2007), "Inventory control in environments with short lead times", International Journal of Physical Distribution & Logistics Management, Vol. 37 No. 2, pp. 115-130. https://doi.org/10.1108/09600030710734839
Publisher
:Emerald Group Publishing Limited
Copyright © 2007, Emerald Group Publishing Limited