A good approximation of the inventory level in a (Q, r) perishable inventory system

A good approximation of the inventory level in a (Q, r) perishable inventory system

– This paper derives a good approach to approximating the expected inventory level per unit time for the continuous review perishable inventory system. Three existing approximation approaches are examined and compared with the proposed approach. Three stockout cases, including the full backorder, the partial backorder, and the full lost sales cases, which customers or material users generally u...

Perishable Inventory System with a Finite Population and Repeated Attempts

Limit Distribution of Inventory Level of Perishable Inventory Model

This paper studies a perishable inventory model, which assumes that each perishable item has finite lifetime, and only one item is consumed each time. The lifetimes of perishable items are independent random variables with the general distribution and so are the consumption internal. Under this assumption, by using backward equations and limit distribution of Markov skeleton processes, this pap...

A two-commodity perishable inventory system

We present a two-commodity perishable stochastic inventory system under continuous review at a service facility with a finite waiting room. The maximum storage capacity for the i–th item is fixed as Si (i = 1, 2). We assume that a demand for the i–th commodity is of unit size. The arrival instants of customers to the service station constitutes a Poisson process with parameter λ. The customer d...

Approximation Algorithms for Perishable Inventory Systems

We develop the first approximation algorithms with worst-case performance guarantees for periodic-review perishable inventory systems with general product lifetime, for both backlogging and lost-sales models. The demand process can be non-stationary and correlated over time, capturing such features as demand seasonality and forecast updates. The optimal control policy for such systems is notori...