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A Probabilistic (Q, s) Inventory Model with Permitted Credit Period

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Abstract

This paper deals with a continuous review (Q, s) inventory policy with a positive lead time during which the demand is a random variable having a known distribution. The supplier offers a credit period which is less than average duration of the inventory cycle. A method of determining the optimal values of Q and s is discussed along with numerical illustrations and the effect of credit period on the policy is also highlighted.

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Authors and Affiliations

  1. Department of Statistics, S.V. University, Tirupati, 517502, India

    K. V. S. Sarma

  2. Department of Statistics, V.R. College, Nellore, 524001, India

    B. Sudhakar

Authors
  1. K. V. S. Sarma
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  2. B. Sudhakar
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Sarma, K.V.S., Sudhakar, B. A Probabilistic (Q, s) Inventory Model with Permitted Credit Period. OPSEARCH 34, 211–220 (1997). https://doi.org/10.1007/BF03398526

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  • DOI: https://doi.org/10.1007/BF03398526

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