Research Article Open Access

Periodic Review Probabilistic Multi-Item Inventory System with Zero Lead Time under Constraint and Varying Holding Cost

Naglaa Hassan El-Sodany1
  • 1 , Afganistan
Journal of Mathematics and Statistics
Volume 7 No. 1, 2011, 12-19

DOI: https://doi.org/10.3844/jmssp.2011.12.19

Submitted On: 17 October 2010 Published On: 29 January 2011

How to Cite: El-Sodany, N. H. (2011). Periodic Review Probabilistic Multi-Item Inventory System with Zero Lead Time under Constraint and Varying Holding Cost. Journal of Mathematics and Statistics, 7(1), 12-19. https://doi.org/10.3844/jmssp.2011.12.19

Abstract

Problem statement: This study treats the probabilistic safety stock n-items inventory system having varying holding cost and zero lead-time subject to linear constraint. Approach: The expected total cost is composed of three components: the average purchase cost; the expected order cost and the expected holding cost. Results: The policy variables for this model are the number of periods N*r and the optimal maximum inventory level Q*mr and the minimum expected total cost. Conclusion/Recommendations: 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.

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Keywords

  • Probabilistic safety stock multi-item
  • zero lead-time
  • varying holding cost
  • constrained probabilistic inventory system
  • random variable
  • demand fluctuations
  • geometric programming techniques
  • orthogonal conditions