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Lead Times and Order Sizes—A not so Simple Relationship

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Information Systems Architecture and Technology: Proceedings of 36th International Conference on Information Systems Architecture and Technology – ISAT 2015 – Part I

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 429))

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Abstract

Order quantity and lead time are two critical aspects of inventory management. In literature, lead time is considered as a constant or an uncontrollable stochastic variable. Theoretically, the order size has linear relationship with lead time meaning that order size increases when lead time increases. A data analysis from a Danish company reveals that the relationship between lead time and order size are not so simple. This paper focuses on analyzing the relationship between lead time and order size in order to answer two questions: (1) whether lead time is affected by order size or not; and (2) whether lead time and order size has linear relationship or not.

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Acknowledgements

The presented research is partly supported by the Polish National Centre of Science under the grant UMO-2012/07/B/HS4/00702.

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Authors and Affiliations

  1. Department of Mechanical and Manufacturing Engineering, Aalborg University, 9220, Aalborg, Denmark

    Peter Nielsen & Ngoc Anh Dung Do

  2. Department of Mathematics and Cybernetics, Wroclaw University of Economics, Wroclaw, Poland

    Zbigniew Michna

  3. SCM Consultant, Copenhagen, Denmark

    Brian Bruhn Sørensen

Authors
  1. Peter Nielsen
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  2. Zbigniew Michna
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  3. Ngoc Anh Dung Do
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  4. Brian Bruhn Sørensen
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Corresponding author

Correspondence to Peter Nielsen .

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Editors and Affiliations

  1. Faculty of Computer Science and Manageme, Wrocław University of Technology, Wrocła, Wroclaw, Poland

    Leszek Borzemski

  2. Faculty of Computer Science and Manageme, Wrocław University of Technology, Wrocła, Wroclaw, Poland

    Adam Grzech

  3. Faculty of Computer Science and Manageme, Wrocław University of Technology, Wrocła, Wrocław, Poland

    Jerzy Świątek

  4. Faculty of Computer Science and Manageme, Wrocław University of Technology, Wrocła, Wrocław, Poland

    Zofia Wilimowska

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Nielsen, P., Michna, Z., Do, N.A.D., Sørensen, B.B. (2016). Lead Times and Order Sizes—A not so Simple Relationship. In: Borzemski, L., Grzech, A., Świątek, J., Wilimowska, Z. (eds) Information Systems Architecture and Technology: Proceedings of 36th International Conference on Information Systems Architecture and Technology – ISAT 2015 – Part I. Advances in Intelligent Systems and Computing, vol 429. Springer, Cham. https://doi.org/10.1007/978-3-319-28555-9_6

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  • DOI: https://doi.org/10.1007/978-3-319-28555-9_6

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-28553-5

  • Online ISBN: 978-3-319-28555-9

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