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Logistical implications of delivery lead tie variability and flexibility

Mattsson, Stig-Arne LU (2004) 16th Annual Conference for Nordic Researchers in Logistics : NOFOMA 2004 In Challenging boundaries with logistics : proceedings of the 16th Annual Conference for Nordic Researchers in Logistics : NOFOMA 2004, 7-8 June, Linköping, Sweden
Abstract
Customer service plays an important role for the competitive strength in the market place. Customer service is however also a concern on the supply side of the company in the sense that assessing, selecting and developing suppliers to improve their customer service can make them contributing to the competitiveness of the company. It is from the latter perspective that this research has been carried out and it addresses the problem of the service that suppliers provide when procuring standardized items to replenish inventories in a repetitive manner.

Delivery lead time and delivery lead time accuracy are two of the customer service elements that have been considered and dealt with by academics as well as practitioners to a large... (More)
Customer service plays an important role for the competitive strength in the market place. Customer service is however also a concern on the supply side of the company in the sense that assessing, selecting and developing suppliers to improve their customer service can make them contributing to the competitiveness of the company. It is from the latter perspective that this research has been carried out and it addresses the problem of the service that suppliers provide when procuring standardized items to replenish inventories in a repetitive manner.

Delivery lead time and delivery lead time accuracy are two of the customer service elements that have been considered and dealt with by academics as well as practitioners to a large extent. There are however two other lead time elements that may have major consequences when trying to improve a company’s performance. These two elements, lead time variability and lead time flexibility are focused in this paper. The main objective of the study is to investigate what it means for the inventory control performance when using a fixed lead time compared to lead times with variability and when using fixed lead times compared to lead times that the supplier within some limits flexibly can adapt to the customers needs. A simulation approach has been used to carry out these investigations.

Given the scenarios studied, the results from the simulations indicate that the length of the lead time has to be heavily reduced to achieve as high inventory control performance as if lead time variability is eliminated or lead time flexibility could be applied. The results are valid for the sum of carrying costs and shortage costs as well as for achieved service levels, especially in situations with medium high and high demand. (Less)
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author
organization
publishing date
type
Chapter in Book/Report/Conference proceeding
publication status
published
subject
in
Challenging boundaries with logistics : proceedings of the 16th Annual Conference for Nordic Researchers in Logistics : NOFOMA 2004, 7-8 June, Linköping, Sweden
editor
Aronsson, Håkan
publisher
NOFOMA
conference name
16th Annual Conference for Nordic Researchers in Logistics : NOFOMA 2004
ISBN
91-7373-985-5
language
English
LU publication?
yes
id
45570237-97ab-4135-835b-7e8af15c0751 (old id 635664)
date added to LUP
2008-02-07 11:16:12
date last changed
2016-04-16 07:23:46
@misc{45570237-97ab-4135-835b-7e8af15c0751,
  abstract     = {Customer service plays an important role for the competitive strength in the market place. Customer service is however also a concern on the supply side of the company in the sense that assessing, selecting and developing suppliers to improve their customer service can make them contributing to the competitiveness of the company. It is from the latter perspective that this research has been carried out and it addresses the problem of the service that suppliers provide when procuring standardized items to replenish inventories in a repetitive manner. <br/><br>
Delivery lead time and delivery lead time accuracy are two of the customer service elements that have been considered and dealt with by academics as well as practitioners to a large extent. There are however two other lead time elements that may have major consequences when trying to improve a company’s performance. These two elements, lead time variability and lead time flexibility are focused in this paper. The main objective of the study is to investigate what it means for the inventory control performance when using a fixed lead time compared to lead times with variability and when using fixed lead times compared to lead times that the supplier within some limits flexibly can adapt to the customers needs. A simulation approach has been used to carry out these investigations.<br/><br>
Given the scenarios studied, the results from the simulations indicate that the length of the lead time has to be heavily reduced to achieve as high inventory control performance as if lead time variability is eliminated or lead time flexibility could be applied. The results are valid for the sum of carrying costs and shortage costs as well as for achieved service levels, especially in situations with medium high and high demand.},
  author       = {Mattsson, Stig-Arne},
  editor       = {Aronsson, Håkan},
  isbn         = {91-7373-985-5},
  language     = {eng},
  publisher    = {ARRAY(0xa2ae8f0)},
  series       = {Challenging boundaries with logistics : proceedings of the 16th Annual Conference for Nordic Researchers in Logistics : NOFOMA 2004, 7-8 June, Linköping, Sweden},
  title        = {Logistical implications of delivery lead tie variability and flexibility},
  year         = {2004},
}