CDetermining Reorder Point and Safety Stock in an Inventory Management System with Uncertainty in Demand and Lead Times (Case Study: Bladder Rings in Tire Curing Process)

In present complicated business environment, uncertainties have a great role. In the meantime, for business continuity, the organizations must have more accuracy about their requirements. Uncertainty in lead times is a usual issue in supply chains. This issue comes from some constraints in financial and logistic systems. For this reason, using of inventory control models with deterministic parameters can create various mistakes. To overcome these issues the stochastic inventory models are used. Since the bladder rings are considered as production tools in tire manufacturing process then optimal inventory management of these items can due to more productivity. In this study, we propose a new mathematical model for an inventory control systems with uncertainty in demand and lead times. The results demonstrate that using of proposed model can lead to reducing the shortage costs and increasing of service level of warehouse. Furthermore, existence of coordination between reorder point and safety stock with demand level and lead times shows that the proposed mathematical model has a good potential to use in real-life problems.