Research Article Open Access

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

Hala A. Fergany

Abstract

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.

American Journal of Applied Sciences
Volume 2 No. 8, 2005, 1213-1217

DOI: https://doi.org/10.3844/ajassp.2005.1213.1217

Submitted On: 27 April 2005 Published On: 31 August 2005

How to Cite: Fergany, H. A. (2005). Periodic Review Probabilistic Multi-Item Inventory System with Zero Lead Time under Constraints and Varying Order Cost. American Journal of Applied Sciences, 2(8), 1213-1217. https://doi.org/10.3844/ajassp.2005.1213.1217

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Keywords

  • Probabilistic model
  • zero lead-time
  • safety stock
  • multi-item
  • varying order cost
  • geometric programming