Open AccessPeriodic Review Probabilistic Multi-Item Inventory System with Zero Lead Time under Constraints and Varying Order Cost
Author(s) -
Hala A. Fergany
Publication year - 2005
Publication title -
american journal of applied sciences
Language(s) - English
Resource type - Journals
eISSN - 1554-3641
pISSN - 1546-9239
DOI - 10.3844/ajassp.2005.1213.1217
Subject(s) - lead time , probabilistic logic , zero (linguistics) , zero order , order (exchange) , lead (geology) , computer science , mathematical optimization , reliability engineering , operations research , mathematics , algorithm , statistics , engineering , first order , operations management , economics , linguistics , philosophy , finance , geomorphology , geology
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.