Abstract
A One-Warehouse M-Retailer Parallel-Type Inventory Model is discussed.In this model, the demand during a unit time is assumed to be a random variable with a given distribution.The costs of ordering, holding stocks, transpotation, liquidation loss and opportunity loss are included.A simple algorithm for determining optimal stock level at each stock point is proposed by using the concept of expected unit-profit function.On applying this algorithm, the distribution function of teh total volume of backorders from M-Retailer is also formulated.The optimal stock levels are obtianed in the two cases where the distribution for demand is given by the exponential and normal distributions, respectively.
