A Software Solution to Lost Sales and Back Order Cases of Probabilistic Inventory System
Keywords:Inventory, Order quantity, Lead time, Back-orders, Lost sales, Expected annual cost
The probabilistic inventory model Â studied in this paper Â introducesÂ uncertaintyÂ in the aspect of lead time and reorder point . It was further considered for back orders and lost sales cases. The lead time and reorder point were described by a normal distribution function for the sake of simplicity. The model led to iterative procedure yet cumbersome to manipulate. Consequently, a simple computer program in Java scripts was designed to achieve the computation. The software was tested on a known problem and a known solution. It returned the exact solution in about a second; and with the values of the reorder point and the order quantity determined by the program, then the estimation of the expected annual cost (EAC) is almost trivial. The difficulty that is associated with the use of the model is thereby reduced. The model can be used to study inventory related problems such as the quantity of meal to be served to the passengers of an aircraft.
, Abou-El-Ata, Fergany, H.A. and M.F. El-Wakeel, Probabilistic multi-item inventory model with varying order cost under two restrictions: A geometric programming approach. Intl. J. Product. Econ., 83: 223-231, 2002
, Chiu, Peter Y., "Determining the optimal lot size for the finite production model with random defective rate, the rework process and backlogging", Engineering Optimization, Vol. 35 (4), 427-437, 2003
, Chiu, Yuan-Shyi P., Chiu, Singa W. and Chao, Huang-Chieh, "Numerical method for determination of reworking or scraping the defective items in a finite production rate model", Communications in Numerical Methods in Engineering, Vol. 22(5), 377-386, 2006
, Goyal, S. K., "A Note on the Paper: An Inventory Model with Finite Horizon and Price Changes", J. Opnl. Res. Soc., Vol. 30 (9), 1980
, Hayek, P. A. and Salameh, M. K., "Production lot sizing with the reworking of imperfect quality items produced", Production Planning and Control, Vol. 12 (6), 584-590, 2001
, Korve K N, Operations Research MAT537 (Inventory Theory), Unpublished lecture notes. Department of Mathematics, University of Jos Nigeria, 1994
How to Cite
- Papers must be submitted on the understanding that they have not been published elsewhere (except in the form of an abstract or as part of a published lecture, review, or thesis) and are not currently under consideration by another journal published by any other publisher.
- It is also the authors responsibility to ensure that the articles emanating from a particular source are submitted with the necessary approval.
- The authors warrant that the paper is original and that he/she is the author of the paper, except for material that is clearly identified as to its original source, with permission notices from the copyright owners where required.
- The authors ensure that all the references carefully and they are accurate in the text as well as in the list of references (and vice versa).
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Attribution-NonCommercial 4.0 International that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
- The journal/publisher is not responsible for subsequent uses of the work. It is the author's responsibility to bring an infringement action if so desired by the author.