Optimal inventory control policy subject to different selling prices of perishable commodities

In this paper, we propose a perishable inventory model with consideration of different selling prices of perishable commodities under stochastic demand. In this model, different lifetimes of perishable commodities are provided, and we consider the discriminating selling prices by different lifetimes. We formulate the model into a Markov decision process model to determine an optimal inventory policy that maximizes the expected average profit per period.