Analysis of the effect of various unit costs on the optimal incoming quantity in a perishable inventory model

In a previous paper, we presented a periodic review perishable inventory model and showed how to compute the optimal incoming order quantity for a single period model with useful shelf lifetime of two periods and no backlogging on demand. The incoming order quantities were computed as a function of the inventory on-hand and on-order for different demand distributions with different levels of demands, and for lead times up to four periods. This paper utilizes the same model and examines the effect of four unit costs: ordering, holding, shortage and outdating costs, on the optimal incoming quantity for the case of one period lead time.