Title: On single item time weighted mixture inventory models with independent stochastic lead times

Authors: Achin Srivastav; Sunil Agrawal

Addresses: PDPM Indian Institute of Information Technology, Design and Manufacturing Jabalpur, Dumna Airport Road, P.O. Khamaria, Jabalpur – 482005, Madhya Pradesh, India ' PDPM Indian Institute of Information Technology, Design and Manufacturing Jabalpur, Dumna Airport Road, P.O. Khamaria, Jabalpur – 482005, Madhya Pradesh, India

Abstract: In this paper, mixture inventory models are developed considering shortages as combination fixed and time weighted backorders with lost sales. The inventory policy assumes single item having deterministic demand where the lead time is stochastic. For the time weighted backorders case, the backorder cost depends on the length of time of shortage. A numerical example is shown to illustrate the results. A sensitivity analysis is conducted to see changes in the optimal parameters with the changing proportion of backorders in the mixture of backorders and lost sales. Finally, the paper shows the benefits of order crossover by comparing interchangeable demand case over non-interchangeable demand.

Keywords: inventory modelling; stochastic lead times; interchangeable demand; sensitivity analysis; shortages; backorders; lost sales; order crossover; inventory management.

DOI: 10.1504/IJSOM.2015.070885

International Journal of Services and Operations Management, 2015 Vol.22 No.1, pp.101 - 121

Received: 23 Jan 2014
Accepted: 24 May 2014
Published online: 31 Jul 2015 *

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