Song, Jing-Sheng; Zipkin, Paul H. - In: Management Science 42 (1996) 9, pp. 1352-1363
We study a basic (r, q) system, in which the demand is a Poisson process and the leadtimes are independent, identically-distributed random variables. The key issue is the joint effect of the leadtime variance and the lot size q on performance. We know that, under a simple base-stock policy (with...