An approximation to the continuous review inventory model with perishable items and lead times

1995 ◽  
Vol 87 (1) ◽  
pp. 93-108 ◽  
Author(s):  
Huan Neng Chiu
Keyword(s):  
Inventory Model ◽  
Lead Times ◽  
Perishable Items ◽  
Continuous Review

CONTINUOUS REVIEW INVENTORY MODELS FOR PERISHABLE ITEMS WITH LEADTIMES

2017 ◽  
Vol 34 (3) ◽  
pp. 317-342 ◽  
Author(s):  
Opher Baron ◽  
Oded Berman ◽  
David Perry
Keyword(s):  
Fixed Cost ◽  
Lead Times ◽  
Perishable Items ◽  
Continuous Review ◽  
Demand Distribution ◽  
Cost Criterion ◽  
The Subject ◽  
Demand Variability ◽  
General Demand ◽  
The Cost

We consider a continuous review (s, S) model of perishable items with lost sales. Once items are perished the entire inventory drops instantaneously to zero. The total cost includes the cost of: ordering, unsatisfied demand, units destroyed, holding, and fixed cost of perishability. Both the time to perishability and the lead times are assumed to be exponentially distributed while two cases of demand distribution are considered: Poisson and compound Poisson with general demand sizes. We study the average cost criterion and provide computational results on the problem of finding the optimal re-order level, s, and order up-to level, S. None of the known work on the subject is as general as the model presented here. Our analysis leads to several insights on the optimal (s, S) policies for perishable items in the presence of lead times. For example, we demonstrate that the effectiveness of a heuristic that ignores perishability (and is also analyzed here) decreases with the demand variability and that the cost may either increase or decrease with this variability.

On the continuous-review (s, S) inventory model under compound renewal demand and random lead times

1983 ◽  
Vol 20 (01) ◽  
pp. 213-219 ◽  
Author(s):  
Izzet Sahin
Keyword(s):  
Additional Assumption ◽  
Practical Interest ◽  
Inventory Model ◽  
Time Dependent ◽  
Lead Times ◽  
Limiting Distributions ◽  
Continuous Review ◽  
Special Cases ◽  
Binomial Moments ◽  
Independent Identically Distributed

Binomial moments of the time-dependent and limiting distributions of inventory deficit are derived for a continuous-review (s, S) inventory system under the assumption that interarrival times, demand sizes, and lead times are independent sequences of independent, identically distributed random variables. Explicit expressions for the limiting distribution are also given in some special cases of practical interest. The approach used follows that of Finch [2] who investigated the system under the additional assumption of unit demands.

On the continuous-review (s, S) inventory model under compound renewal demand and random lead times

1983 ◽  
Vol 20 (1) ◽  
pp. 213-219 ◽  
Author(s):  
Izzet Sahin
Keyword(s):  
Additional Assumption ◽  
Practical Interest ◽  
Inventory Model ◽  
Time Dependent ◽  
Lead Times ◽  
Limiting Distributions ◽  
Continuous Review ◽  
Special Cases ◽  
Binomial Moments ◽  
Independent Identically Distributed

Binomial moments of the time-dependent and limiting distributions of inventory deficit are derived for a continuous-review (s, S) inventory system under the assumption that interarrival times, demand sizes, and lead times are independent sequences of independent, identically distributed random variables. Explicit expressions for the limiting distribution are also given in some special cases of practical interest. The approach used follows that of Finch [2] who investigated the system under the additional assumption of unit demands.

Multi-Location Inventory Model Considering Bidirectional and Unidirectional Transshipments Simultaneously

2013 ◽  
Vol 694-697 ◽  
pp. 2742-2745
Author(s):  
Jin Hong Zhong ◽  
Yun Zhou
Keyword(s):  
Process Model ◽  
Approximate Calculation ◽  
Inventory Model ◽  
Inventory System ◽  
Death Process ◽  
Birth And Death Process ◽  
Inventory Models ◽  
Continuous Review ◽  
Poisson Demand ◽  
Queue Theory

Abstract. A cross-regional multi-site inventory system with independent Poisson demand and continuous review (S-1,S) policy, in which there is bidirectional transshipment between the locations at the same area, and unidirectional transshipment between the locations at the different area. According to the M/G/S/S queue theory, birth and death process model and approximate calculation policy, we established inventory models respectively for the loss sales case and backorder case, and designed corresponding procedures to solve them. Finally, we verify the effectiveness of proposed models and methods by means of a lot of contrast experiments.

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