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A stochastic inventory system with replacement of perishable items

Author

Listed:
  • N. Saranya

    (Madurai Kamaraj University)

  • A. Shophia Lawrence

    (Madurai Kamaraj University)

Abstract

This article presents a continuous review perishable inventory system in which the perished items will be replaced by the supplier at a later time. Demands occur according to a Markov arrival process. The items in the inventory have exponential life times and these perished items are stored in a place, called pool for replacement. The (s, S) ordering policy is adopted. At the time of placing an order, the ordering quantity is adjusted with number of items in the pool. The lead time is assumed to have phase type distribution. The joint probability distribution of the inventory level and the number of pooled items is obtained in the steady state case using the matrix-geometric methods. Various system performance measures in the steady state are derived and the total expected cost rate is calculated under a prefixed cost structure. The results derived in this work are numerically illustrated.

Suggested Citation

  • N. Saranya & A. Shophia Lawrence, 2019. "A stochastic inventory system with replacement of perishable items," OPSEARCH, Springer;Operational Research Society of India, vol. 56(2), pages 563-582, June.
    • Handle: RePEc:spr:opsear:v:56:y:2019:i:2:d:10.1007_s12597-019-00372-5
    DOI: 10.1007/s12597-019-00372-5
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    References listed on IDEAS

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    Cited by:

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    2. Makoena Sebatjane & Olufemi Adetunji, 2022. "Optimal inventory replenishment and shipment policies in a three-echelon supply chain for growing items with expiration dates," OPSEARCH, Springer;Operational Research Society of India, vol. 59(3), pages 809-838, September.
    3. P. Majumder & U. K. Bera & M. Maiti, 2020. "An EPQ model of substitutable products under trade credit policy with stock dependent and random substitution," OPSEARCH, Springer;Operational Research Society of India, vol. 57(4), pages 1205-1243, December.
    4. Umay Uzunoglu Kocer & Bahar Yalcin, 2020. "Continuous review (s, Q) inventory system with random lifetime and two demand classes," OPSEARCH, Springer;Operational Research Society of India, vol. 57(1), pages 104-118, March.

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