Stochastic analysis for inventory system pertaining to seasonal demand with following hyper exponential distribution

Abstract

To improve profit, success rate many organizations adapt an inventory system for their development. It is inevitable in real life to fine tune inventory models which require to manufacture one unit for sale for varied products. Marketing and sales of them begin when certain numbers of them are produced for economic reasons. In this paper, a unit is constituted by products namely A, B and C which deals with the production and sales with highest production size k sets among the products. The production times of the products are general and the season starts in a hyper exponential distribution time.The occurrence of either the beginning of sales of sets when k sets are produced or at the event of commencement of the season of the product whichever occurs first.  The objective of this paper is to optimize the profit and cut down the shortage cost by way of double Laplace Transform of production and sale time. The results are illustrated numerically are presented with MATLAB/SIMULINK software