Volume 2, Issue 6, December 2017, Page: 68-74
Determination of Optimal Supply When Demand Is a Sum of Components
Vijayakumar Raman, Department of Statistics, St. Joseph’s College, Trichy, Tamil Nadu, India
Venkatesan Thirunavukkarasu, Department of Statistics, St. Joseph’s College, Trichy, Tamil Nadu, India
Muthu Chinnathambi, Department of Statistics, St. Joseph’s College, Trichy, Tamil Nadu, India
Received: Sep. 27, 2017;       Accepted: Nov. 7, 2017;       Published: Dec. 14, 2017
DOI: 10.11648/j.mma.20170206.13      View  1421      Downloads  44
Abstract
Among the various inventory systems our method is used to find the optimal supply size. To find the optimal supply size taking in to consideration the aspects like inventory holding cost per unit, cost of shortage per unit etc., In many situation the demand taken to be a random variable. The total demand is in turn a sum of three random variables namely (i) demand due to consumers (ii) demand due to the supply of the product to sister concerns or companies. (iii) Demand due to replacement of defective items that are not accepted and hence exchanged for new units Under these assumptions the optimal supply size is derived.
Keywords
Demand for the Product, Optimal Supply Size, Sum of Random Variables, Convolution Principle
To cite this article
Vijayakumar Raman, Venkatesan Thirunavukkarasu, Muthu Chinnathambi, Determination of Optimal Supply When Demand Is a Sum of Components, Mathematical Modelling and Applications. Vol. 2, No. 6, 2017, pp. 68-74. doi: 10.11648/j.mma.20170206.13
Copyright
Copyright © 2017 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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