Base stock inventory system with quality dependent delivery time

This paper explain single inventory problem operated by a base stock policy. The item demand is explained by Poisson process and supply lead time is a random variable follow exponential distribution. The supply lead time is considered to depend on the quality of the product accessible with the supplier. Whenever the desired quality is not available on shelf, the lead time distribution under goes a drift in mean. The optimum bas stock level is determined with the help of M/M/1 queue and the effect of drifted lead time distribution is applied to the cost function. The aftereffect of the model is shown with the assistance of spread sheet format.