EXPLOITING LINEAR INDEPENDENCE IN THE ANALYSIS OF STOCHASTIC INVENTORY SYSTEMS

摘要

If lead time and demand rate were iid and mutually independent, then their contributions to the total cost should be additive. Thus, the total cost of a full stochastic model should equal the cost of the deterministic model with backlogging plus the add-ons due to stochastic lead time and stochastic demand. We verify this hypothesis by simulation.