INVENTORY MODEL OF TYPE (s,S) WITH SUBEXPONENTIAL WEIBULL DISTRIBUTED DEMAND

Abstract

In this study we consider a semi-Markovian inventory model of type (s, S) with subexponentialWeibull distributed demand and uniform distributed interference of chance. By using a special asymptoticexpansion proposed by Geluk and Frenk (2011) we derived an asymptotic expansion for the renewal functiongenerated by the subexponential Weibull distributed demand random variables. Trough this renewal functionwe obtained two term asymptotic expansion for the ergodic distribution function of the process whichrepresents the model that we consider here. Moreover we proved weak convergence theorem for the ergodicdistribution function and derived the limit distribution

Keywords

• Inventory model of type (s,S), Heavy tailed distributions, Subexponential distributions,Renewal reward process, Asymptotic expansion

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