d="para0001">A supply chain with stochastic lead-time and ARMA demand is considered.
dd><dt class="label">•dt><dd>d="para0002">Exact expressions are obtained for the distributions of order and inventory.
dd><dt class="label">•dt><dd>d="para0003">Under order crossover, the order-up-to policy does not minimize inventory variance.
dd><dt class="label">•dt><dd>d="para0004">Inventory variance minimization by proportional policy also reduces bullwhip.
dd><dt class="label">•dt><dd>d="para0005">This ability is compromised under some demand auto-correlation cases.
dd>dl>