We study a single item, single location, periodic review inventory procurement problem in this paper.
Demand is modeled as a continuous time stochastic process.
An order for procurement of additional inventory is placed at the beginning of every period and is received before the beginning of the next period. In other words, the lead time is between zero and the length of a period. Demand that cannot be satisfied with inventory on hand is lost. Properties of the optimal ordering policy are the main focus of this study.