Supply interruptions in a lost-sales inventory system with random lead time

Development of an inventory model for two suppliers with random capacity considering supply disruption

“…They considered a single item inventory model which was observed periodically in a randomly changing environment. Mohebbi (2003) argued that within the context of inventory control theory, very little had appeared in the literature that focuses on the issue of random supply interruptions in inventory systems with non-zero replenishment lead times, owing to the inherent analytical complexity of such systems. In this paper, he investigated the issue of random supply interruptions in a continuous-review inventory system where demands and lead times were stochastic, and stock-outs were lost.…”

A tight approximation for an EOQ model with supply disruptions

“…Parlar (1997) studies a similar but more general model than Gupta-for example, allowing for stochastic lead times-but formulates an approximate cost function. Mohebbi (2003Mohebbi ( , 2004) extends Gupta's model to consider compound Poisson demand and stochastic lead times; he derives expressions for the inventory level distribution and expected cost, both of which must be evaluated numerically except in the special case in which demand sizes are exponentially distributed. Chao (1987) and Chao, et al (1989) consider stochastic demand for electric utilities with market disruptions and solve the problem using stochastic dynamic programming.…”

A simulation optimisation approach for inventory management decision support based on incomplete information

“…Parlar (1997) develops a heuristic cost-minimization model for the supply interruption problem in a continuous-review (s, Q) inventory system with random demand, random lead time, and backorders where the duration of the on-period follows an Erlang distribution and the off-period is general. More recently, Mohebbi (2003) presents an exact cost-minimization model for a continuous-review lost sales inventory system in which demands occur according to a compound Poisson process and lead times follow an Erlang distribution. He uses independent non-identical exponential distributions to describe the supplier's on/off periods and applies an (s, Q)-type control policy while allowing for a maximum of one order to be outstanding at any time.…”