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

Fergany, Hala A.; El-Wakeel, Mona F.

doi:10.3844/jmssp.2006.363.366

Cited by 8 publications

(7 citation statements)

References 9 publications

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“…In two other researches, Fergany and El-Wakeel [15][16] have studied the problem of lost sales in the probabilistic inventory management model with normal and continuous distribution function. In both studies, the ordering cost is also variable.…”

Section:   ( )mentioning

confidence: 99%

A Non-Convex Robust Simulation Optimization Model for Inventory Management Problem by System Dynamics

Sharifi,

Aghaie

2021

Scientia Iranica

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Perishable product inventory management is a challenging issue because of its direct effect on companies' profits. The dependence of a product order cost on the order quantity is one of the practical but less examined assumptions in this problem literature. Hence, this paper considers the dependency between the order cost and order quantity as well as between the holding cost and the inventory level. This problem will have a non-convex object, and is not solvable through the usual mathematical methods. Thus, simulation-optimization approach is used to determine the perishable product inventory management policy with stochastic demand. The system dynamics approaches have been used to simulate the problem by minimizing the cost function. The casual diagram, inputs, output, and relation of the system are determined. A numerical example of a hypermarket is presented, and the optimal amount of the objective function is determined with optimization of the input variables via the experimental design's method. Then, to rule out the effects of different errors, a robust optimization of the model is presented. The results show that the proposed replenishment policy could benefit the necessary decisions regarding inventory management and control of the perishable products which count in different errors.

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Section:   ( )mentioning

confidence: 99%

A Non-Convex Robust Simulation Optimization Model for Inventory Management Problem by System Dynamics

Sharifi,

Aghaie

2021

Scientia Iranica

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“…The author [10]discussed about the stochastic uniform inventory model with varying cost and a constraint on the holding cost by considering the average inventory at any time 't'. [11] studied a continuous review model with lost sales case, varying order cost, a restriction on holding cost and also lead time demand is assumed as normal distribution. [12] studied a probabilistic inventory model for deteriorating items with ramp type demand rate under inflation.…”

Section: Literature Reviewmentioning

confidence: 99%

A two level probabilistic inventory model with a constraint on holding cost

Nagasree¹,

Madhavilata²,

Sailakumari³

2019

Malaya J. Mat.

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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

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“…Abou-El-Ata and Kotb ( 1996 ), Abou-El-Ata et al 2003 ) studied multi-item EOQ inventory models-with varying costs under two restrictions. Moreover, Fergany and El-Saadani ( 2005 , 2006 ; Fergany et al 2014 ) treated constrained probabilistic inventory models with continuous distributions and varying costs.…”

Section: Backroundmentioning

confidence: 99%

Probabilistic multi-item inventory model with varying mixture shortage cost under restrictions

Fergany

2016

SpringerPlus

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This paper proposed a new general probabilistic multi-item, single-source inventory model with varying mixture shortage cost under two restrictions. One of them is on the expected varying backorder cost and the other is on the expected varying lost sales cost. This model is formulated to analyze how the firm can deduce the optimal order quantity and the optimal reorder point for each item to reach the main goal of minimizing the expected total cost. The demand is a random variable and the lead time is a constant. The demand during the lead time is a random variable that follows any continuous distribution, for example; the normal distribution, the exponential distribution and the Chi square distribution. An application with real data is analyzed and the goal of minimization the expected total cost is achieved. Two special cases are deduced.

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

Cited by 8 publications

References 9 publications

A Non-Convex Robust Simulation Optimization Model for Inventory Management Problem by System Dynamics

A Non-Convex Robust Simulation Optimization Model for Inventory Management Problem by System Dynamics

A two level probabilistic inventory model with a constraint on holding cost

Probabilistic multi-item inventory model with varying mixture shortage cost under restrictions

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