Lead Time Demand Modeling in Continuous Review Supply Chain Models

Abstract

This paper introduces a mixture distribution approach to modeling the probability density function for lead time demand (LTD) in problems where a continuous review inventory system is implemented. The method differs from the typical "moment-matching" approach by focusing on building up an accurate, closed-form approximation to the LTD distribution from its components by using mixtures of truncated exponential (MTE) functions. First, construction of the LTD is illustrated and the approach is compared to two other possible LTDs. This distribution is then utilized to determine optimal order policies in cases in which a buyer makes its decisions alone, and later in a situation in which members of a two-level supply chain coordinate their actions.

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Document Details

Document Type
Technical Report
Publication Date
Apr 01, 2013
Accession Number
ADA586416

Entities

People

  • Alan W. Johnson
  • Barry R. Cobb

Organizations

  • Virginia Military Institute

Tags

Communities of Interest

  • Air Platforms
  • Energy and Power Technologies
  • Ground and Sea Platforms

DTIC Thesaurus Topics

  • Acquisition
  • Air Force
  • Department Of Defense
  • Engineering
  • Inventory
  • Lead Time
  • Logistics
  • Logistics Management
  • Military Acquisition
  • Operations Research
  • Probability
  • Probability Density Functions
  • Probability Distributions
  • Procurement
  • Random Variables
  • Supply Chain
  • Supply Chain Management

Readers

  • Logistics and Supply Chain Management.
  • Statistical inference.