Constrained Probabilistic multi-source Continuous Review Inventory Model with Dagum and Kumaraswamy-Dagum distributions

Abstract

The main objective of this paper is to minimize the expected total cost using Lagrange multiplier approach with decreasing varying holding cost for probabilistic continuous review single-item multi-source inventory model under a restriction on the storage space. The optimal order quantity and the optimal reorder point for the best source which achieve the goal when lead time demand follows Dagum and Kumaraswamy-Dagum distributions of obtained. Also, an application is analyzed and reach the goal of minimizing the expected total cost with simulation data.