Current studies indicate that buyers can improve lead-time performance and reduce total inventory-system costs by splitting orders between two suppliers. These studies, however, treat transportation only implicitly as an element of the cost of placing an order. This is an important limitation, because shipping costs increase disproportionately as the size of shipment decreases and typically com…
Namit and Chen recently created two algorithms to solve the inventory model for gamma lead-time demand without using tabulated values. However, other less complicated solutions that do not require the use of tabulated values are currently available. This note demonstrated the relative simplicity of those solutions and discussed some practical considerations.