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Optimizing a Multi-Product Continuous-Review Inventory Model With Uncertain Demand, Quality Improvement, Setup Cost Reduction, and Variation Control in Lead Time

In this paper, a continuous-review inventory model is developed for multi-products with fuzzy demand. Two constraints as service level and storage space are considered. Furthermore, this paper considers the process quality improvement, setup costs reduction, and controllable lead time. Lead time demand is an any arbitrary distribution and only mean and standard deviation are known. For this, a distribution-free procedure is employed. Total cost is minimized according to the decision variables for the worst possible distribution situation. A numerical example is given to illustrate the significance of the proposed model. Finally, conclusions and future research directions are given.