This paper investigates the lead time and ordering cost reductions are inter-dependent in the periodic review inventory model with backorder price discount. The objective is to minimize the total related cost by simultaneously optimizing the review period, lead time and backorder price discount. The protection interval demand is assumed to be normally distributed. A procedure of finding the optimal solution is developed, and two numerical examples are given to illustrate the results.
Relation:
International Journal of Information and Management Sciences 18(3), pp.195-208
