Stochastic model of three products inventory system assuming seasonal demand following exponential distribution

Abstract

In this paper we discuss the production and sales of three different products A, B and C with maximum production size as k sets of them. The production of the products A, B and C are done in order. When one set of A, B, and C is produced, the production of the next set starts. The sales of the sets begin when k sets are produced or when the season for the products starts whichever occurs first.The production times of the products are assumed to have general distributions and the season starts in an exponential time. The double Laplace Transform of production and sale time and their means are obtained. Numerical examples are presented.