A LOST SALES INVENTORY SYSTEM WITH MULTIPLE REORDER LEVELS

In the analysis of continuous review inventory systems with lost sales,all the models studied so far impose the restriction s < S-s or s = S-1 to make the analysis tractable.This paper deals with a general lost sales inventory system with renewal demands and exponential lead times without any condition on the values of s and S.The inventory level distribution and the mean reorder and shortage rates are obtained.A computational procedure to calculate the various limiting values along with numerical illustration is provided.