Reply to a note on the inventory models with ramp-type demand of negative exponentially distributed changing point

Abstract

We provide a reply for the open question in Tung (2013) that was published in Journal of Industrial and Production Engineering. We prove that the optimal solution for their inventory model with ramp-type demand where the changing point follows a probability density function (pdf) is independent of the pdf type. Our findings may shed a light for future researchers to develop more advanced inventory models.

Keywords:

• inventory models
• ramp-type demand
• expected average total cost