In this paper a single period two level probabilistic inventory model with continuous distribution of demand is considered. The objective of this paper is to find the optimal purchase quantity S and also the quantity that can be stored in OW W which minimizes the expected total cost for the period under the restriction that the expected holding cost cannot exceed fixed quantity. Lagrange's method of multipliers approach is used to find the optimal values of S and W. Numerical example is illustrated to represent the model
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.