A linearization approach for inventory models with variable lead time

This paper proposes an approximate global optimization approach for solving inventory models with variable lead time to find a solution close to a global optimum. A linear programming relaxation based on piecewise linearization techniques is derived for the problem. First, it converts non-linear terms into the sum of absolute terms, which are then linearized by goal-programming techniques and linearization approaches. Finally, several typical examples are used to show the superior flexibility of the proposed approach that allows the user to add his own constraints.