A Bi-Modal Inventory Study with Random Lead Times.

Abstract

A single-product continuous review inventory problem is formulated and solved. The chief virtue of the formulation is that the probability distribution of lead times is general. It is found that the optimal order size differs from the Wilson EOQ when holding costs or deterioration rate (both are lumped into a single discount rate) are large, and that it may even be a non-unique quantity. The second (fast) shipment mode enters in the same manner as a stockout cost. (Author)

Document Details

Document Type
Technical Report
Publication Date
Sep 01, 1973
Accession Number
AD0769404

Entities

People

  • A. R. Washburn

Organizations

  • Naval Postgraduate School

Tags

DTIC Thesaurus Topics

  • Inventory
  • Lead Time
  • Mathematics
  • Probability
  • Probability Distributions
  • Random Variables
  • Scheduling (Production)
  • Time

Readers

  • Calculus or Mathematical Analysis
  • Logistics and Supply Chain Management.
  • Mathematical Modeling and Probability Theory.