Hello, does anyone have any references or past publication about inventory management for probabilistic demand and lead time (fixed order interval system) but the goods arrive partially?
For example: every month I order 100 kg of powder; the first 25 kg will come on the first week, the second 20 kg will come on the second week, 30 kg for the third and 25 kg for fourth week.
Thank you.
sir i read about fixed order quantity system in my MBA. I am going to share some formula which may be helpful to you.
Minimum Stock= Safety Stock
Maximum Stock= Safety Stock + Economic Order Quantity
Re Order Level= Safety Stock + Lead time Consumption
Avg Stock= ( Min. Stock + Max. Stock)/2
This system is cost Based.
Check this paper:
https://link.springer.com/article/10.1057/jors.1996.102
You can use EOQ and safety stock model to manage this situation.
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