We propose 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. We also present a setup cost reduction model for periodic review inventory model to investigate the effect of the investment cost on inventory operating cost. For each case, we develop an algorithm to find the optimal solution. Furthermore, the sensitivity analysis is included and two numerical examples are given in this study.
International journal of information and management sciences 12(1), pp.1-13