We borrow the term 'static stochastic' from the classification of order crossover by Riezebos [2006, Inventory Order Crossovers. International Journal of Production Economics, 104(2), p. 668]. The term 'static stochastic' refers to iid lead times, with its consequence of order crossovers. Here,...

In a study on stochastic inventory systems, Chopra et al. (Decision Sciences 35(1) (2004) 1–24) argue that decreasing lead time is the right lever if they want to cut inventories, not reducing lead time variability. According to Chopra et al., reducing the mean lead time, μ, is more important...

Risk analysts frequently encounter functional relationships concerning costs and revenue which can be expressed as standard algebraic forms. The forms are quadratic, product, or mixed functions of variables which are normally distributed and not necessarily statistically independent. (The ratio...

When supply lead times are uncertain, the simultaneous procurement from two sources offers savings in inventory holding and shortage costs. Economies are achieved if these savings outweigh the increase in ordering costs. In this paper we analyze dual sourcing in the context of the "reorder...