Research Article

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

Table 2

The optimal order quantity and corresponding average inventory cost of the two methods.

State grid code of materialsOptimal order quantity QAverage inventory cost C
New modelNewsvendor modelNew modelNewsvendor model

500012723747546970.782
500012771366918470.9122
5000127979357741.32154
5000128016132611.591490
500014661772124.03244424
500014662116325.23106020
500014670283833.9115360
500014711501114.51819737
500014713441014.651069736
500016589398725520.9910
500016592350623741.0212
50001729313925601.22307
50001732013326131.22253
500017325528240640.893
500020609203593.6329781
500020612255767921.081
50002141257159.11498517
5000218035051761.893338
50002183015076171.19250
500021862506929960.917
50002186916156721.16209
50002226911114811.30422
500022271610050380.961
50002715112194631.35455
500027464471111.33863026
50002969015416161.22251
5000326815591881.912904
500032682110604.0229123
5000326849303341.64899
5000326874211332.455889
50003513714085511.26317
50005182917947681.12157
50005369467187.43321886
500058470556734010.915
5000615267532891.521208
5000615647072501.671629
50006175811454641.30454
5000622828623601.41771
5000634199803661.43743
500064132452832200.945
50006564432730.632162199
500065658240694.3922318
500066495855862120.881
50006725116227751.16154
500067292234010321.0183
500067551260112771.0251
5000675673291242.186809
5000676525852021.812505
50006765411354451.32496