Analysis of two commodity Markovian inventory system with lead time

A two commodity continuous review inventory system with independent Poisson processes for the demands is considered in this paper. The maximum inventory level for the i-th commodity is fixed asS ⁱ (i = 1,2). The net inventory level at timet for the i-th commodity is denoted byI ⁱ(t),i = 1,2. If the total net inventory levelI(t) =I ¹(t) +I ²(t) drops to a prefixed level s \leqslant \tfrac(S₁ - 2)2or\tfrac(S₂ - 2)2]s \leqslant \tfrac{{(S_1 - 2)}}{2}or\tfrac{{(S_2 - 2)}}{2}] , an order will be placed for (S ⁱ −s) units of i-th commodity(i=1,2). The probability distribution for inventory level and mean reorders and shortage rates in the steady state are computed. Numerical illustrations of the results are also provided.