Research Article Open Access

Constrained Probabilistic Lost Sales Inventory System with Normal Distribution and Varying Order Cost

Hala, A. Fergany, Mona and F. EL-Wakeel

Abstract

This study derives the probabilistic lost sales inventory system when the order cost is a function of the order quantity. Our objective is to minimize the expected annual total cost under a restriction on the expected annual holding cost when the lead-time demand follows the normal distribution by using the Lagrangian method. Then a published special case is deduced and an illustrative numerical example is added.

Journal of Mathematics and Statistics
Volume 2 No. 1, 2006, 363-366

DOI: https://doi.org/10.3844/jmssp.2006.363.366

Published On: 31 March 2006

How to Cite: Hala, Fergany, A., Mona, & EL-Wakeel, F. (2006). Constrained Probabilistic Lost Sales Inventory System with Normal Distribution and Varying Order Cost. Journal of Mathematics and Statistics, 2(1), 363-366. https://doi.org/10.3844/jmssp.2006.363.366

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Keywords

  • Probabilistic model lost sales inventory system
  • varying order cost
  • lead-time demand