Name
Abstract | ||
|---|---|---|
This paper is an in-depth treatment of an inventory control problem with perishable items. We focus on two prototypes of perishability
for items that have a common shelflife and that arrive in batches with zero lead time: (i) sudden deaths due to disasters
(e.g., spoilage because of extreme weather conditions or a malfunction of the storage place) and (ii) outdating due to expirations
(e.g., medicine or food items that have an expiry date). By using known mathematical tools we generalize the stochastic analysis
of continuous review (s, S) policies to our problems. This is achieved by integrating with each inventory cycle stopping times that are independent
of the inventory level. We introduce special cases of compound Poisson demand processes with negative jumps and consider demands
(jumps) that are exponentially distributed or of a unit (i.e., Poisson) demand. For these special cases we derive a closed
form expression of the total cost, including that of perishable items, given any order up to level. Since the stochastic analysis
leads to tractable expressions only under specific assumptions, as an added benefit we use a fluid approximation of the inventory
level to develop efficient heuristics that can be used in general settings. Numerical results comparing the solution of the
heuristics with exact or simulated optimal solutions show that the approximation is accurate. |
Year | DOI | Venue |
|---|---|---|
2010 | 10.1007/s00186-010-0318-1 | Math. Meth. of OR |
Keywords | Field | DocType |
stochastic analysis,exponential distribution,inventory control,s,stopping time | Perishability,Mathematical optimization,Expression (mathematics),Stochastic process,Operations research,Closed-form expression,Heuristics,Lead time,Exponential distribution,Poisson distribution,Mathematics | Journal |
Volume | Issue | ISSN |
72 | 2 | 1432-2994 |
Citations | PageRank | References |
6 | 0.65 | 11 |
Authors | ||
3 | ||
Name | Order | Citations | PageRank |
|---|---|---|---|
| Opher Baron | 1 | 145 | 14.64 |
| O. Berman | 2 | 1604 | 231.36 |
| David Perry | 3 | 190 | 34.07 |