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An Inventory Model with Poisson Demand and Linear Lost Sales
Current Issue
Volume 1, 2014
Issue 1 (February)
Pages: 17-20   |   Vol. 1, No. 1, February 2014   |   Follow on         
Paper in PDF Downloads: 40   Since Aug. 28, 2015 Views: 1846   Since Aug. 28, 2015
Ying-Chieh Chen , Department of Accounting, Ming Chuan University, Taiwan.
In this article, we shall construct a lost sales inventory model with Poisson demand. Lost sales are linear increasing function of waiting time in the stockout period. Then, the optimal planning and shortage periods are determined such that the expected profit per unit time is maximized.There are two special cases are also discussed.One is the whole period is stockout, and the other is the whole period is non-stockout. And we also find the optimal supply cycle and optimal order quantity of goods such that expected profit per unit time is maximized.
Inventory, Partially Backordered, Poisson Demand
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