A lost sales inventory system in a random environment

This paper discusses an <s,S) inventory model without backorders where the demand and supply rates are controlled by an environment process which is a finite irreducible Markov chain in continuous time. Apart from obtaining the transform solution of the inventory level distribution, an efficient algorithm to evaluate the steady state values. is provided. The transient and limiting values of the mean reorder and shortage rates are also obtained. All the results are numerically illustrated. © 1989, Taylor & Francis Group, LLC. All rights reserved.