Analysis of inventory policies for perishable items with fixed leadtimes and lifetimes

Fredrik Olsson ()

Annals of Operations Research, 2014, vol. 217, issue 1, 399-423

Abstract: This paper deals with a continuous review inventory system with perishable items and Poisson demand. Lifetimes and leadtimes are assumed to be fixed. First, a quite general base-stock model is developed where a number of combinations between backorder- and lost sales policies are evaluated and optimized. The solution technique for all these combinations is exact. Secondly, we consider the case with non-negligible ordering costs and assume that the inventory policy employed is the commonly used ( $$R,Q$$ R , Q ) policy. We develop a new heuristic approach for evaluating and analyzing the proposed $$(R,Q)$$ ( R , Q ) model and compare our results with those obtained by related papers. This heuristic approach uses the base-stock model developed as a building block. The results reveal that our approach works reasonably well in all cases considered. Copyright Springer Science+Business Media New York 2014

Keywords: Inventory; Perishable items; Batch ordering policy; Partial backorders (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (11)

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DOI: 10.1007/s10479-014-1590-x

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