In this article, we investigate a periodic review inventory model with a mixture of backorders
and lost sales in which both the lead time and the review period are considered as
decision variables. It is assumed that the probability distribution of the protection interval,
i.e., lead time plus review period, demand is unknown but its first two moments are given, we apply the minimax distribution free procedure to solve this problem. An algorithm to
find the optimal review period and optimal lead time is developed.
Relation:
International journal of information and management Sciences 9(4), pp.25-35
