A perishable inventory model with Markovian renewal demands

Zhaotong Lian, Xiaoming Liu and Ning Zhao

International Journal of Production Economics, 2009, vol. 121, issue 1, 176-182

Abstract: In the inventory model, people usually assume that the inter-demand time is independently identical distributed which may not be true in reality. Here we study an (s,S) continuous review model for items with an exponential random lifetime and a general Markovian renewal demand process. By constructing Markovian renewal equations, we derive the mean and the variance of the reorder cycle time and lead to a simple expression for the total expected long run cost rate. The numerical results illustrate the system behavior and lead to managerial insights into controlling such inventory systems.

Keywords: Inventory; Perishable; Markovian; renewal; process; Demand (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:121:y:2009:i:1:p:176-182

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