A robustness study of static inventory model with complete inspection

A static inventory model with time-independent cost elements has been considered. The lead-time is assumed to be zero. The order amount is instantaneously received and is subject to complete inspection. On the basis of such inspection items failing to meet specification requirements are discarded and other elements are stocked to meet future demand. Demand for the entire period is known. The best order size comes out to be the solution of an equation, which involves a probability distribution of proportion of good items. Assuming beta distribution for the proportion an investigation is made how the best order size changes with the change in any or both of the two parameters involved in beta distribution.