Stochastic inventory control model with two stages in ordering process

Abstract

The purpose of offered work is the construction of a stochastic single‐product inventory control model for the chain “producer – wholesaler – customer”. Given situation takes place in many transport and industrial companies. Criterion of optimization is minimum of average expenses for goods holding, ordering and losses from deficit per a time unit.

First published online: 14 Oct 2010

Keyword : inventory control, single‐product order, demand, lead time, chain, optimization