Distribution-Free Continuous Review Inventory Model with Controllable Lead Time and Setup Cost in the Presence of a Service Level Constraint
Joint Authors
Source
Mathematical Problems in Engineering
Issue
Vol. 2012, Issue 2012 (31 Dec. 2012), pp.1-16, 16 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2012-09-23
Country of Publication
Egypt
No. of Pages
16
Main Subjects
Abstract EN
Based on the mean and the standard deviation of lead time demand, and also taking the difficulty in measuring shortage cost into consideration, we investigate the joint decision problem of continuous review inventory in which a service level constraint should be satisfied.
Under the assumption of controllable lead time and setup cost, a mathematical programming model is established.
The objective function of the proposed model is the total expected annual cost and the constraint guarantees that the service level requirement can be satisfied at the worst case.
Subsequently, an equivalent nonlinear programming model is derived.
By constructing Lagrange function, the analysis regarding the solution procedure is conducted, and a solution algorithm is then provided.
Moreover, a numerical example is introduced to illustrate the proposed model and solution algorithm.
Through sensitivity analysis, some observations and managerial implications are provided.
American Psychological Association (APA)
MA, Wei-Min& QIU, Bing-Bing. 2012. Distribution-Free Continuous Review Inventory Model with Controllable Lead Time and Setup Cost in the Presence of a Service Level Constraint. Mathematical Problems in Engineering،Vol. 2012, no. 2012, pp.1-16.
https://search.emarefa.net/detail/BIM-1002039
Modern Language Association (MLA)
MA, Wei-Min& QIU, Bing-Bing. Distribution-Free Continuous Review Inventory Model with Controllable Lead Time and Setup Cost in the Presence of a Service Level Constraint. Mathematical Problems in Engineering No. 2012 (2012), pp.1-16.
https://search.emarefa.net/detail/BIM-1002039
American Medical Association (AMA)
MA, Wei-Min& QIU, Bing-Bing. Distribution-Free Continuous Review Inventory Model with Controllable Lead Time and Setup Cost in the Presence of a Service Level Constraint. Mathematical Problems in Engineering. 2012. Vol. 2012, no. 2012, pp.1-16.
https://search.emarefa.net/detail/BIM-1002039
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1002039