A two reorder level inventory system with renewal demands

This article deals with a lost sales inventory system with renewal demands where orders are placed at two levels s(> 0) and zero with ordering quantities Q > s and s respectively. The mean replenishment rates depend not only on the inventory level but also on the number of pending orders. Explicit expressions for the various operating characteristics are obtained. Also the problem of minimizing the long-run expected cost rate is discussed. Numerical illustrations of sensitivity analysis with regard to different parameters are also provided. © 1995.