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A single period model for a multiproduct perishable inventory system with economic substitution

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  • Bryan L. Deuermeyer

Abstract

This paper develops a single period model for a specific class of multiproduct perishable inventory systems where demands are interdependent. This class of inventory systems has the property that there is economic substitution between products. It is shown that the optimal policy has the economic substitution property, and that the rate of substitution is age dependent. The model serves as a generalization of a theorem discovered by Ignall and Veinott.

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  • Bryan L. Deuermeyer, 1980. "A single period model for a multiproduct perishable inventory system with economic substitution," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 27(2), pages 177-185, June.
    • Handle: RePEc:wly:navlog:v:27:y:1980:i:2:p:177-185
    DOI: 10.1002/nav.3800270202
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    Cited by:

    1. Barry A. Pasternack & Zvi Drezner, 1991. "Optimal inventory policies for substitutable commodities with stochastic demand," Naval Research Logistics (NRL), John Wiley & Sons, vol. 38(2), pages 221-240, April.
    2. Xiuli Chao & Xiting Gong & Cong Shi & Chaolin Yang & Huanan Zhang & Sean X. Zhou, 2018. "Approximation Algorithms for Capacitated Perishable Inventory Systems with Positive Lead Times," Management Science, INFORMS, vol. 64(11), pages 5038-5061, November.

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