Title
The impact of lead time reliability in freight transport : a logistics assessment of transport economics findings The impact of lead time reliability in freight transport : a logistics assessment of transport economics findings
Author
Faculty/Department
Institute for Transport en Maritime Management (ITMMA)
Publication type
article
Publication
Exeter ,
Subject
Economics
Mathematics
Source (journal)
Transportation research: part E: logistics and transportation review. - Exeter
Volume/pages
49(2013) :1 , p. 190-200
ISSN
1366-5545
ISI
000314376800014
Carrier
E
Target language
English (eng)
Full text (Publishers DOI)
Affiliation
University of Antwerp
Abstract
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.
E-info
https://repository.uantwerpen.be/docman/iruaauth/b84c87/32a5a2a7cdb.pdf
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