Inventory models with variable lead time taking account of time value

Abstract In this paper, inventory models with linear decreasing lead time crashing cost taking account of time are discussed. The purpose of this paper is threefold. First, we investigate the connection between those local minimums. Second, the relation among backordered ratios with the total expected annual cost is studied. Third, a simple algorithm to get the optimal order quantity will be developed. Numerical examples are included to the illustrated models and solution procedure.