1 Department of Mathematical Sciences, Faculty of Science, Aarhus University, Aarhus University2 Department of Mathematics, Science and Technology, Aarhus University3 unknown4 Department of Mathematics, Science and Technology, Aarhus University
We extend well-known formulae for the optimal base stock of the inventory system with continuous review and constant lead time to the case with periodic review and stochastic, sequential lead times. Our extension uses the notion of the ‘extended lead time’. The derived performance measures are exact for Poisson demands.
International Journal of Inventory Research, 2008, Vol 1, Issue 1, p. 44-52