A NEW APPROXIMATION FOR INVENTORY CONTROL SYSTEM WITH DECISION VARIABLE LEAD-TIME AND STOCHASTIC DEMAND


Akcan S., KOKANGÜL A.

INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING-THEORY APPLICATIONS AND PRACTICE, vol.20, pp.262-272, 2013 (Journal Indexed in SCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 20
  • Publication Date: 2013
  • Title of Journal : INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING-THEORY APPLICATIONS AND PRACTICE
  • Page Numbers: pp.262-272

Abstract

Demand for any material in a hospital depends on a random arrival rate and random length of stay in units. Therefore, the demand for any material shows stochastic characteristics that make determining the optimum level of r and Q problem more difficult. Thus, in this study, a single item inventory system for healthcare was developed using a continuous review (r, Q) policy. A simulation meta-model was constructed to obtain equations for the average on-hand inventory and average number of orders per year. Then, the equations were used to determine the optimal levels of r and Q while minimizing the total cost in an integer non-linear model. The same problem investigated in this study was also solved using OptQuest optimization software.