Open Access Open Access  Restricted Access Subscription or Fee Access

Developing a Continuous Review (R, Q) Policy when the Demand during Lead-time distributed Generalized Gamma four-parameters

K. M. Ghafour, R. Ramli, N. Z. Zaibidi


This paper focuses on a multi-echelon inventory system under continuous review (R, Q) policy with generalized Gamma four-parameter distribution of demand during lead-time which consist a distribution center and three warehouses that satisfy unlimited retailers. In this paper we were able to reach a new formulation of Economic Order Quantity Q through a mathematical derivation by integration of the probability density function of the demand during lead-time in the inventory total cost function. In addition, the numerical results show the best exploit of the daily production which represents the optimal values of the economic order quantities Q at each echelon and the optimal reorder point R at each installation and echelon. However, this paper is an extend of our previous work which we proved that the demand during lead-time distributed generalized Gamma four-parameters by a simulation model.


Continuous review (R, Q) policy, EOQ, Generalized Gamma four-parameter distribution

Full Text:



  • There are currently no refbacks.

Disclaimer/Regarding indexing issue:

We have provided the online access of all issues and papers to the indexing agencies (as given on journal web site). It’s depend on indexing agencies when, how and what manner they can index or not. Hence, we like to inform that on the basis of earlier indexing, we can’t predict the today or future indexing policy of third party (i.e. indexing agencies) as they have right to discontinue any journal at any time without prior information to the journal. So, please neither sends any question nor expects any answer from us on the behalf of third party i.e. indexing agencies.Hence, we will not issue any certificate or letter for indexing issue. Our role is just to provide the online access to them. So we do properly this and one can visit indexing agencies website to get the authentic information.