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

Hala A. Fergany
2005 American Journal of Applied Sciences  
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 for this model are the number of periods * r N and the optimal maximum inventory level * mr Q and the minimum expected total cost. We can obtain the optimal values of these policy
more » ... these policy variables by using the geometric programming approach. A special case is deduced and an illustrative numerical example is added.
doi:10.3844/ajassp.2005.1213.1217 fatcat:7qfb4ogogjaingi66c6vyjqvuq