Periodic Review Probabilistic Multi-Item Inventory System with Zero Lead Time under Constraints and Varying Order Cost
Hala A. Fergany
DOI : 10.3844/ajassp.2005.1213.1217
American Journal of Applied Sciences
Volume 2, Issue 8
This study treats the probabilistic safety stock n-items inventory system having varying order cost and zero lead-time subject to two linear constraints. The expected total cost is composed of three components: the average purchase cost; the expected order cost and the expected holding cost. The policy variables in this model are the number of periods Nr* and the optimal maximum inventory level Qmr* and the minimum expected total cost. We can obtain the optimal values of these policy variables by using the geometric programming approach. A special case is deduced and an illustrative numerical example is added.
© 2005 Hala A. Fergany. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.