EXPONENTIAL BACKORDER COSTS AND CONTINUOUS LEAD TIMES FOR THE (M,T) INVENTORY MODEL SERIES 1
DR. Martin Osawaru Omorodion
Journal Title:Global Journal of Engineering Science and Research Management (GJESRM)
The inventory model (M,T) with exponential backorder costs and continuous lead time is the model considered in this paper. At review
time the stock is ordered to bring it to level M. The (M,T) model is derived from the inventory costs of inventory model (n,Q,R,T), when
at review time a multiple of Q, n = 1,2---, is ordered, the lead time is assumed to follow a gamma distribution and demand during lead
time is assumed to be a normal variate. The backorder cost is exponential, C? (t)= b_1 exp (b_2 t).