(Q,r,L) Inventory model with defective items

This paper assumes that an arrival order lot may contain some defective ite ms, and the number of defective items is a random variable. We derive a mod ified mixture inventory model with backorders and lost sales, in which the order quantity, the reorder point and the lead time are decision variables. in our studies, we first assume that the lead time demand follows a normal distribution, and then relax the assumption about the form of the distribu tion function of the lead time demand and apply the minimax distribution-fr ee procedure to solve the problem. We develop an algorithm procedure to obt ain the optimal ordering strategy. Furthermore, the effects of parameters a re also included. (C) 2001 Elsevier Science Ltd. All rights reserved.