Article ID: | iaor20107708 |
Volume: | 72 |
Issue: | 2 |
Start Page Number: | 217 |
End Page Number: | 247 |
Publication Date: | Oct 2010 |
Journal: | Mathematical Methods of Operations Research |
Authors: | Berman Oded, Perry David, Baron Opher |
Keywords: | deteriorating items |
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 (