, Volume 5, Issue 2, pp 297–305 | Cite as

Probabilistic order level system with lead time when delay in payments are permissible

  • Nita H. Shah


The probabilistic order level inventory model with lead time when shortages are permitted is developed whe supplier allows some credit periodT * for setting the accounts for the purchase quantity. The scheduling periodT is known. Mathematical models are derived for both the cases: i)T *T and ii)T *>T. Expressions are derived for average expected total cost of the system and for obtaining optimum order levelZ=Z 0 under each case.


Lead Time Inventory Model Sales Revenue Schedule Period Order Level 
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Copyright information

© Sociedad de Estadística e Investigación Operativa 1997

Authors and Affiliations

  • Nita H. Shah
    • 1
  1. 1.Gujarat UniversityAhmedabadIndia

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