Article ID: | iaor2013847 |
Volume: | 226 |
Issue: | 3 |
Start Page Number: | 481 |
End Page Number: | 490 |
Publication Date: | May 2013 |
Journal: | European Journal of Operational Research |
Authors: | Darwish M A, Abdulmalek F, Alkhedher M |
Keywords: | demand |
It is very common to assume deterministic demand in the literature of integrated targeting – inventory models. However, if variability in demand is high, there may be significant disruptions from using the deterministic solution in probabilistic environment. Thus, the model would not be applicable to real world situations and adjustment must be made. The purpose of this paper is to develop a model for integrated targeting – inventory problem when the demand is a random variable. In particular, the proposed model jointly determines the optimal process mean, lot size and reorder point in (