A technical note on periodic inventory model with controllable lead time under service level constraint


In this article, a periodic review inventory model having variable lead time, along with the service level constraint has been discussed. The demand during the protection interval is assumed to follow the Normal distribution. A wide range of expected shortages during the protection interval has been considered, with their corresponding values of safety factor. Keeping this in mind, we have returned to both Ouyang and Chuang (2000) and Liang et al. (2008) model. Further, it has been observed that both the models do not succeed in providing the solution for service level other than 98% and 99%.  In the light of this fact, we revisit the solution procedure of both the papers and are able to obtain the result for any level of service. Detail comparative analysis has also been presented.

DOI Code: 10.1285/i20705948v9n1p83

Keywords: Periodic inventory, Lead-Time, Shortages, Service level



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