Study on Inventory Model with Service Level Constraints and Changeable Safety Factor

The inventory control problem when taking account of service level constraints has been investigated in this paper.Under the condition that the order quantity and the safety factor are both treated as variables,an optimal inventory control model is established as the safety factor changes and the inventory system is subjected to service level constraints.It can be proved that the proposed model is a convex programming problem and there is only one optimal solution,and the solution algorithm is also given.Finally,the effectiveness of the model and the algorithm provided in this paper is validated with a numerical example.