International Journal of Mathematics and Mathematical Sciences
Volume 25 (2001), Issue 3, Pages 197-203
doi:10.1155/S0161171201003234
On a stochastic inventory model with deteriorating items
L. Aggoun1
, L. Benkherouf1
and L. Tadj3
1Department of Mathematics and Statistics, Sultan Qaboos University, P.O. Box 36, Al-Khod 123, Oman
3Department of Mathematics and Operations Research, King Saud University, P.O. Box 2455, Riyadh 11451, Saudi Arabia
Abstract
We suggest a new inventory continuous time stochastic model for deteriorating items. We derive optimal operating characteristics of the expected cost per unit time under the assumption that demand in each replenishment cycle forms a regenerative process. We also present numerical examples.