The safety stock and inventory cost paradox in a stochastic lead time setting

26th Production and Operations Management Society Annual Conference, Washington, USA, 8th-11th May, 10 pages.

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Abstract

We develop and study a dynamic stochastic model of the production, collection, disassembly and remanufacture of photocopiers produced and sold in Japan and Thailand. We consider the inventory requirements and costs of saleable products as well as capacity requirements and costs in production, collection, disassembly and remanufacture in both countries.