INVENTORY MODEL (M. T.) EXPONENTIAL BACKORDER COST RANDOM SUPPLY AND CONSTANT LEAD TIME SERIES 2
Keywords:
Exponential distribution, random supply, constant lead times, normaldistribution, gamma distribution, backorder costs and inventory costs.Abstract
This paper derives the inventory costs for inventory model (M.T) with exponential backorder cost and random supply and constant-lead times by taking the inventory cost for model (M.T) exponential backorder costs with constant lead times equation (12) of series 1 and averaging the inventory costs over the states of M. the maximum reorder level. The supply is assumed to be a gamma variate and demand during the lead time is still following a normal distribution.
