Periodic Review Probabilistic Multi-Item Inventory System with Zero Lead Time under Constraint and Varying Holding Cost
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.
DOI: https://doi.org/10.3844/jmssp.2011.12.19
Copyright: © 2011 Naglaa Hassan El-Sodany. 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.
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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