Abstract
In this study, we focus on the derivation of an optimal inventory policy to help tackle the supply disruption problem. The main objective of the study is to derive an optimal inventory policy for a retailer who is facing stochastic supply disruption and stochastic demand, operating under a (r, S) continuous review policy so as to minimise the total inventory cost per time-unit. Renewal reward theorem is used to help develop the total inventory cost function which consists of order cost, time-dependent holding and shortage costs in the existence of replenishment lead time. Numerical experiments and sensitivity analyses are then conducted to illustrate the applicability of the developed inventory policy.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Industrial and Systems Engineering
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
