The typical response by many companies to cope with uncertainty has been to
carry inventory. However, the costs of holding inventory, in increased obsolescence
and of investing in warehouse operations, have become unsustainable. The
use of appropriate logistics practices has become imperative for all types of
organizations. Firms are therefore challenged to improve their performance on
inventory and lead-time-related characteristics, while simultaneously capturing
economies of scale and enhancing customer service (Bhatnagar et al. 1999).