Nonparametric Statistics and Stochastic Optimization for Optimal Order Point Under Limit Capacity

Gain loss due to out of stock, increasing inventory cost due to amass stock, limited self-capacity (self-inventory and lease inventory make the stock cost differences), uncertainty of lead time, make the optimal point problem complex. Use the nonparametric statistics method to randomly simulate the lead time distribution, propose the average expense model of multi- period, develop and solve the random optimization of the order point in which the lead time is random variable, the minimum expense is the objective function. The experiment tests above methods and models. Research shows that not only the nonparametric statistics method and random optimization solve the complex order point problem, but also the results are more scientific and more reasonable. So the order point process has well application value.