In inventory control, suitable models for various real life systems are constructed with the objective of determining the optimal inventory level. A new type of inventory model using the so-called change of distribution property is analyzed in this paper. There are two machines M1 and M2 in series and the output of M1 is the input of M2. Hence a reserve inventory between M1 and M2 is to be maintained. The method of obtaining the optimal size of reserve inventory, assuming cost of excess inventory, cost of shortage and when the rate of consumption of M2 is a constant, has already been attempted. In this paper, it is assumed that the repair time of M1 is a random variable and the distribution of the same undergoes a change of distribution after the truncation point X0 , which is taken to be a random variable. The optimal size of the reserve inventory is obtained under the above said assumption . Numerical illustrations are also provided.
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