1
$\begingroup$

All the examples I saw so far were for the case when lead time is smaller than the cycle period. What should the reorder point be if lead time is higher than the cycle time? Should I just simply order 2 cycles in advance or something?

$\endgroup$
1
  • $\begingroup$ Welcome to ORSE. What you mean by 'the cycle period'? $\endgroup$
    – A.Omidi
    Commented Oct 23, 2022 at 9:20

1 Answer 1

2
$\begingroup$

There is no reason for dealing the situation differently where your cycle period is shorter than your lead time. Your ordering strategy uses the inventory position as the state variable to describe your inventory system. This means there will always be multiple orders outstanding but you don't need to deviate from your ordering strategy (e.g. order cycles in advance). When you are dealing with a higher degree of complexity (e.g. perishability), this change of assumption dóes changes things.

$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge you have read our privacy policy.

Not the answer you're looking for? Browse other questions tagged or ask your own question.