An inventory model in which the items decay exponentially and the lead times are probabilistic, is studied in this paper. The inventory level is reviewed continuously, and when shortages are occurred, two cases of allowing backorders and lost sales ar...
An inventory model in which the items decay exponentially and the lead times are probabilistic, is studied in this paper. The inventory level is reviewed continuously, and when shortages are occurred, two cases of allowing backorders and lost sales are considered respectively. In finding optimal lot sizes and reorder point for this model, a heuristic method is applied.