An alternative simple solution algorithm of an inventory model with fixed and variable lead time crash costs under unknown demand distribution

Authors: Hoque, M. A.¹; Goyal, S. K.²

Source: International Journal of Systems Science, Volume 40, Number 8, August 2009 , pp. 821-827(7)

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Abstract:

Inventory models with controllable lead time both for known and unknown demand distributions have been proposed in the literature. A model is useless unless it is formulated correctly and feasible. A simple solution procedure of a model also plays an important role in its application. This article highlights an erroneous formulation of an inventory model developed with fixed and variable lead time crash costs under unknown demand distribution, and also demonstrates its infeasibility. To attain feasibility we extend the model to include a constraint. Then, we present an alternative simple solution technique of the modified model and carry out a comparative study on a numerical example to show its potential significance.

Keywords: inventory; reduced lead time; crash cost

Document Type: Research article

DOI: http://dx.doi.org/10.1080/00207720902961014

Affiliations: 1: Department of Mathematics, Faculty of Science, University of Brunei Darussalam, Brunei, Darussalam 2: Department of DSMIS, John Molson School of Business, Concordia University, Quebec, Canada

Publication date: 2009-08-01

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