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ISSN: 1549-3644 (Print)
ISSN: 1558-6359 (Online)
Research Article Open Access

Constrained Probabilistic Lost Sales Inventory System with Normal Distribution and Varying Order Cost

Hala, A. Fergany, Mona and F. EL-Wakeel

Abstract

This study derives the probabilistic lost sales inventory system when the order cost is a function of the order quantity. Our objective is to minimize the expected annual total cost under a restriction on the expected annual holding cost when the lead-time demand follows the normal distribution by using the Lagrangian method. Then a published special case is deduced and an illustrative numerical example is added.

Journal of Mathematics and Statistics
Volume 2 No. 1, 2006, 363-366

DOI: https://doi.org/10.3844/jmssp.2006.363.366

Published On: 31 March 2006

How to Cite: Hala, Fergany, A., Mona, & EL-Wakeel, F. (2006). Constrained Probabilistic Lost Sales Inventory System with Normal Distribution and Varying Order Cost. Journal of Mathematics and Statistics, 2(1), 363-366. https://doi.org/10.3844/jmssp.2006.363.366

Open AccessCopyright: © 2006 Hala, A. Fergany, Mona and F. EL-Wakeel. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

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Keywords

  • Probabilistic model lost sales inventory system
  • varying order cost
  • lead-time demand