Article ID: | iaor20033062 |
Country: | China |
Volume: | 25 |
Issue: | 2 |
Start Page Number: | 7 |
End Page Number: | 10 |
Publication Date: | Apr 2002 |
Journal: | Journal of Jingzhou Teachers College |
Authors: | Chen Yaohui |
Keywords: | deteriorating items |
This paper describes an equilibrium equation with a clear physical sense for the inventory model where the goods corrode easily. The state of the items deteriorates following an exponential distribution and the demand rate follows general renewal process. This paper also gives a concise method for looking for optimum solution of the model. We can calculate the objective function by a recurrence formula instead of needing to know all the state probabilities.