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As demand lead time is shorter, the optimal base stock level of process 2 is higher.
Optimal base stock level of process 1 is 1 or 0, which depends on demand lead time.
If the optimal base stock level of process 1 is 0, then the average cost is identical when ( t_{1} ) is changed from 0 to ( d ).
In particular, when parameters satisfy ( rho le h_{1}/ ({h_{1} + b} ) ), optimal base stock level of process 1 is zero and it is optimal to process an item at processes 1 and 2 continuously.
From discussion of "Optimal base stock level", if ( t_{1} ge d ) then optimal base stock level of process 1 is ( 0 ), and if ( t_{1} < d ) then there are two possible cases on the optimal base stock levels.
If the optimal base stock level of process 1 is one, then optimal ( t_{1} ) is 0, which means the optimal release lead time of process 1 is the same as process 2. Then by (1), processes 1 and 2 start process items at the same time.
Similar(51)
When demand lead time is in ( (T_{k},T_{k + 1}) ) ( ({k = 1, 2, ldots widehat{S}_{0} - 1} ), ) the sum of optimal base stock levels of processes 1 and 2 becomes ( k ).
"Optimal release lead time and optimal base stock level" summarizes results of "Optimal release lead time of process 1" and gives optimal base stock levels and release lead time explicitly, and theoretically, for each demand lead time, which is listed in Table 5.
In "Optimal base stock level", optimal amounts of base stocks are investigated for given release lead time.
That is, their theoretical analysis and optimization of release lead time and base stock level have little been obtained because of its difficulty.
For sufficient supply from the supplier, we build the approximate decision model of their base stock level, in which the suppliers' reactions are not considered, and its non-cooperative behaviour is obtained.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com