A JELS Stochastic inventory model with random demand

G. Panda; D.A. Khan; U.C. Ray

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SPEPS Preprint

Author(s):	G. Panda, IIT Kharagpur D.A. Khan, NIT Jamsedpur U.C. Ray, NIT, India
Title:	A JELS Stochastic inventory model with random demand
Date of Acceptance:	18.10.2006
Submission Date:	13.03.2006
Series Title:	Stochastic Programming E-Print Series (SPEPS)
Editors:	Julie L. Higle; Werner Römisch; Surrajeet Sen
Complete Preprint:	pdf (urn:nbn:de:kobv:11-10069094)
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Abstract (eng):

A stochastic joint lot size model has been developed in which demand of the customer and the stock level of the vendor are assumed to be identically distributed continuous random variables. The effective ways for a compromise between the vendor and the customer at a common lot size with certain amount of price adjustments are determined and the methodology is explained through a numerical example. Key words: Inventory control programming, Stochastic models, Truncated normal distribution, Joint economic lot size.

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