One of the important uses of an EOQ item's distribution of lead time demand is to set its reorder point. This paper shows that a realistic model of observed demand patterns can be chosen from the compound Poisson family of distributions. Actual historical data from several U.S. Air Force bases...

This paper describes a simulation study of assigning attainable or predictable due-dates in hypothetical labor and machine constrained job shop settings of varying size and structure. Several predictable due-date assignment rules are developed based on conditional estimates of individual job...

This research examines the effectiveness of alternative strategies for dealing with the problem of order instability, or nervousness, which occurs in Material Requirements Planning systems. Nervousness can be particularly disruptive in multi-level production processes where a change in order...

This paper develops optimal order quantities for firms that are offered a one-time opportunity to delay payment for an order of a commodity. Such delayed payments result in a reduction of the effective purchase cost, which is a function of the return available on alternative investments, the...

There has been a great deal of interest recently in the Japanese approach to manufacturing, growing out of a concern for finding ways to reduce inventories and increase productivity. At this project's inception, its objective was to assess whether the kanban system could perform well in the...

In this Note, we address the issue of safety stock considerations in an MRP environment through the use of a single identical component as a replacement for a set of multiple components. We indicate where the results reported by Collier (Collier, David A. 1982. Aggregate safety stock levels and...

The relationship between aggregate safety stock inventory levels and component part commonality is developed. A simulation experiment strongly supports the functional form of this relationship in an uncertain operating environment. Managers can use these equations to assess the trade-offs...

Classical Economic Manufacturing Quantity (EMQ) models have usually ignored the possibility of process deterioration and the existence of defective items in the production lot. Moreover, the use of machine inspection for maintenance and restoration purposes has not been considered. On the other...

This paper considers the impact of tax liabilities on optimal inventory policy through the medium of FIFO and LIFO tax valuation schemes in a stochastic environment. The relationship between inventory policy and changes in either the rate of inflation or the corporate tax rate is investigated....

We formulate a stochastic-demand version of the single-stage lot-sizing problem with time-varying demand, incorporating a service-level constraint on the probability of a stockout. Three strategies are studied. The "static uncertainty" strategy, in which lot-sizing decisions for every period...