INVENTORY MODEL (nQ, R, T) RANDOM SUPPLY, CONSTANT LEAD TIMES AND EXPONENTIAL BACK ORDER COSTS
DR. Martin Osawaru Omorodion
DR. Gabriel Jenyo
Journal Title:Global Journal of Engineering Science and Research Management (GJESRM)
This paper derives the inventory costs for the model when the backorder costs are exponential, lead time is constant and supply is
It derives firstly the inventory cost for fixed constant lead times and exponential backorder costs. The random supply cost is obtained
by averaging the result over the states of supply.
Demand during lead time is normal and supply is assumed to be a gamma variate
It derives the expected backorder costs, the expected number of backorders at any point in time and the probability of a stockout.