Constrained Probabilistic Lost Sales Inventory System with Normal Distribution and Varying Order Cost
Hala , A. Fergany, Mona and F. E. Wakeel
DOI : 10.3844/jmssp.2006.363.366
Journal of Mathematics and Statistics
Volume 2, Issue 1
This study derives the probabilistic lost sales inventory system when the order cost is a function of the order quantity. Our objective is to minimize the expected annual total cost under a restriction on the expected annual holding cost when the lead-time demand follows the normal distribution by using the Lagrangian method. Then a published special case is deduced and an illustrative numerical example is added.
© 2006 Hala , A. Fergany, Mona and F. E. Wakeel. 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.