TY - JOUR
T1 - The impact of lead time reliability in freight transport: A logistics assessment of transport economics findings
AU - Dullaert, W.E.H.
AU - Zamparini, L.
PY - 2013
Y1 - 2013
N2 - This paper considers speed and reliability, measured by the average and variance of the lead time, to examine the relevance of the latter variable on inventory costs. By using a flexible simulation framework, it is shown that reducing variability does not necessarily reduce costs and might in fact increase the costs of safety stock, depending on the shape of the demand distribution during lead time and the targeted service level. This offers a novel explanation for the wide variety of value of reliability figures obtained in empirical transport economics research. © 2012 Elsevier Ltd.
AB - This paper considers speed and reliability, measured by the average and variance of the lead time, to examine the relevance of the latter variable on inventory costs. By using a flexible simulation framework, it is shown that reducing variability does not necessarily reduce costs and might in fact increase the costs of safety stock, depending on the shape of the demand distribution during lead time and the targeted service level. This offers a novel explanation for the wide variety of value of reliability figures obtained in empirical transport economics research. © 2012 Elsevier Ltd.
U2 - 10.1016/j.tre.2012.08.005
DO - 10.1016/j.tre.2012.08.005
M3 - Article
VL - 49
SP - 190
EP - 200
JO - Transportation Research. Part E, Logistics and Transportation Review
JF - Transportation Research. Part E, Logistics and Transportation Review
SN - 1366-5545
IS - 1
ER -