In the stochastic lead time inventory model with two suppliers and different normal lead times, the mean and variance of the lead-time demand distribution are traditionally computed using numerical integration. Tables are made available to help practitioners determine the minimum size of replenishments when orders to the suppliers are placed at the same time. This paper presents closed-form solutions to evaluate the required quantities of interest and tries to correct some mistakes in the existing tables. The expressions given here may also provide insight into the choice of sole versus dual suppliers.
All Science Journal Classification (ASJC) codes
- Management Information Systems
- Strategy and Management
- Management Science and Operations Research