Abstract
Find ways to decrease the total costs related to supply chain activities have given more attention to a more globalized trade. This paper proposes a way to react to time variable demand in an integrated inventory model that enables the manufacturer to reduce lead times and the corresponding variable demand effect. The objective of the model is to control the inventory level in such a way that the total cost of the supply chain is minimized: A solution procedure is suggested and the behavior of the model is analyzed in a numerical example.