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An inventory control model with stochastic review interval and special sale offer

Author

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  • Karimi-Nasab, M.
  • Konstantaras, I.

Abstract

Periodic review inventory models are widely used in practice, especially for inventory systems in which many different items are purchased from the same supplier. However, most of periodic review models have assumed a fixed length of the review periods. In practice, it is possible that the review periods are of a random (stochastic) length. This paper presents an inventory control model in the case of random review intervals and special sale offer from the supplier. The replenishment interval is assumed to obey from two different distributions, namely, exponential and uniform distributions. Also, shortages are allowed in the term of partial backordering. For this model, its convexity condition is discussed and closed form solutions are proposed.

Suggested Citation

  • Karimi-Nasab, M. & Konstantaras, I., 2013. "An inventory control model with stochastic review interval and special sale offer," European Journal of Operational Research, Elsevier, vol. 227(1), pages 81-87.
    • Handle: RePEc:eee:ejores:v:227:y:2013:i:1:p:81-87
    DOI: 10.1016/j.ejor.2012.11.050
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    References listed on IDEAS

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    2. Li, Linda & Miller, David & Schmidt, Charles P., 2016. "Optimizing inventory׳s contribution to profitability in a regulated utility: The Averch–Johnson effect," International Journal of Production Economics, Elsevier, vol. 175(C), pages 132-141.
    3. San-José, Luis A. & Sicilia, Joaquín & García-Laguna, Juan, 2014. "Optimal lot size for a production–inventory system with partial backlogging and mixture of dispatching policies," International Journal of Production Economics, Elsevier, vol. 155(C), pages 194-203.
    4. Taleizadeh, Ata Allah & Zarei, Hamid Reza & Sarker, Bhaba R., 2017. "An optimal control of inventory under probablistic replenishment intervals and known price increase," European Journal of Operational Research, Elsevier, vol. 257(3), pages 777-791.
    5. Srinivas R. Chakravarthy & B. Madhu Rao, 2021. "Queuing-Inventory Models with MAP Demands and Random Replenishment Opportunities," Mathematics, MDPI, vol. 9(10), pages 1-26, May.
    6. Mina Nouri & Seyyed-Mahdi Hosseini-Motlagh & Mohammadreza Nematollahi, 2021. "Proposing a discount policy for two-level supply chain coordination with periodic review replenishment and promotional efforts decisions," Operational Research, Springer, vol. 21(1), pages 365-398, March.
    7. Pinçe, Çerağ, 2021. "Forward Buying and Strategic Stockouts," European Journal of Operational Research, Elsevier, vol. 289(1), pages 118-131.

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