Premium
A lost sales (S — 1, S) perishable inventory system with renewal demand
Author(s) -
Kalpakam S.,
Sapna K. P.
Publication year - 1996
Publication title -
naval research logistics (nrl)
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.665
H-Index - 68
eISSN - 1520-6750
pISSN - 0894-069X
DOI - 10.1002/(sici)1520-6750(199602)43:1<129::aid-nav8>3.0.co;2-d
Subject(s) - stock (firearms) , renewal theory , exponential distribution , exponential growth , exponential function , operations research , markov chain , lost sales , computer science , mathematical optimization , constant (computer programming) , holding cost , markov process , operations management , econometrics , economics , mathematics , statistics , engineering , mechanical engineering , mathematical analysis , machine learning , programming language
This article analyzes a one‐to‐one ordering perishable inventory model with renewal demands and exponential lifetimes. The leadtimes are independently and exponentially distributed and the demands that occur during stock out periods are lost. Although the items are assumed to decay at a constant rate, the output process is not renewal and the Markov renewal techniques are successfully employed to obtain the operating characteristics. The problem of minimizing the long run expected cost rate is discussed and numerical values of optimal stock level are also provided. © 1996 John Wiley & Sons, Inc.