Analysis of Inventory Systems

assumed average annual cost average number backorder cost backorders incurred Chapter compute Consider constant constraint continuous random variable convex convex function defined demand occurs density function determine the optimal discrete discrete random variable expected cost expected number expected value gamma distribution given hand inventory Hence interval inventory carrying charge inventory level inventory position inventory system Lagrange multiplier lead time demand lost sales Markov process mean rate minimize negative binomial distribution normal distribution number of backorders number of orders number of units obtained operating doctrine optimal value order is placed periodic review system placing an order Poisson distributed Poisson process probability problem procedure process generates demands procurement lead rate of demand reorder point Rr policy safety stock solve stochastic process stockout costs transactions reporting unit cost units are demanded units demanded variance λτ