Exact Analysis and Simulation Test of Continuous (s, Q) Inventory Policy with Stochastic Lead Times

Our reseaarch consider the standard (s, Q) model for controlling finished goods inventory under continuous review when the lead times are stochastics. We assume that customer's demand is deterministic and the unsatisfied goods are lost. Based on the reviewing relevant literature, we present our approximate formulations and apply them into a case. By using Excel, we prove our approximate solution