Optimal Relief Order Quantity under Stochastic Demand and Lead-time

Document Type : Research Paper


1 Industrial Engineering, Kharazmi University, Tehran, Iran

2 Department of Industrial Engineering, Tsinghua University, Beijing, China



In this paper, a newsboy model is developed under uniformly distributed lead-time and demand that is an appropriate assumption in obtaining optimal relief inventory of humanitarian disasters. It is noteworthy that limited historical data are in hand on relief operations. Hence, analytical and approximate solutions for optimal relief order quan­tity were derived. The effect of lead-time uncertainty on the optimal solution was analytically tested. The approximate solution was numerically evaluated and proper agreement with analytical data was achieved with a low variation coefficient of lead-time. The analytical results showed that lead-time uncertainty might increase or decrease relief order quantity, depending on the variation coefficient of lead-time.