Article ID: | iaor19961111 |
Country: | United States |
Volume: | 43 |
Issue: | 1 |
Start Page Number: | 129 |
End Page Number: | 142 |
Publication Date: | Feb 1996 |
Journal: | Naval Research Logistics |
Authors: | Kalpakam S., Sapna K.P. |
Keywords: | markov processes |
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.