Determining the Optimal Order Quantity with Compound Erlang Demand under (T,Q) Policy

<div>The average inventory cost <svg height="8.8423pt" id="M129" style="vertical-align:-0.2064009pt" version="1.1" viewbox="-0.0498162 -8.6359 8.8162 8.8423" width="8.8162pt" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink"><g transform="matrix(.013,0,0,-0.013,0,0)"><path d="M645 631C614 643 545 666 457 666C215 666 23 519 23 283C23 90 158 -16 337 -16C412 -16 489 2 522 10C543 39 590 127 606 167L580 181C519 89 459 18 348 18C201 18 122 136 122 287C122 464 244 632 435 632C544 632 602 595 608 472L639 475C643 526 645 581 645 631Z" id="g113-68"></path></g></svg> with varying lead time <svg height="8.68572pt" id="M130" style="vertical-align:-0.0498209pt" version="1.1" viewbox="-0.0498162 -8.6359 7.31558 8.68572" width="7.31558pt" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink"><g transform="matrix(.013,0,0,-0.013,0,0)"><path d="M541 160L512 170C485 116 462 88 439 67C411 41 376 35 318 35C272 35 238 37 224 48C207 61 205 85 212 121L290 533C305 611 308 615 391 622L397 650H139L133 622C217 615 221 612 206 533L126 118C111 41 103 34 23 26L17 0H474C489 31 528 124 541 160Z" id="g113-77"></path></g></svg> for the electric power materials with compound Erlang-distributed demand.</div>

Mathematical Problems in Engineering

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Figure 4

Figure 4: Determining the Optimal Order Quantity with Compound Erlang Demand under (T,Q) Policy 