An approximation to the continuous review inventory model with perishable items and lead times

A lost sales (r, Q) inventory control model for perishables with fixed lifetime and lead time

“…Assuming that the lead time is zero, they constructed a Markov renewal model and proposed a heuristic approach for dealing with the case of constant lead time. Under full backorders, Chiu (1995a) proposed an approximate (r, Q) policy. A similar model has also been studied by Kouki et al (2013).…”

A good approximation of the inventory level in a (Q, r) perishable inventory system

“…The continuous review perishable inventory problem with positive order lead time also involves complex computation, as stated by Schmidt and Nahmias [20] and mentioned before. Thus, this author [3] presented a simple yet good approximation to the expected outdating for the …”

“…Equation (1) has been shown to be a fairly acceptable approximation of the exact expected outdating in the situation where the continuous review strategy is used. It should be noted here that equation (1) (1) can approximate the expected outdating effectively has been discussed in more detail elsewhere [3]. In the following three sections, our attention will be focused on the derivations and comparisons of the expected inventory levels per unit time for the three stockout cases.…”

“…Twenty-four test problems which appeared in Chiu [3] were used and are listed in Table 1. 5 40 100 5 7 15 20 10 5 8 15 20 50 5 9 15 20 100 5 10 15 40 10 5 11 15 40 50 5 12 15 40 100 5 13 5 20 10 15 14 5 20 50 15 15 5 20 100 15 16 5 40 10 15 17 5 40 50 15 18 5 40 100 15 19 15 20 10 15 20 15 20 50 15 21 15 20 100 15 22 15 40 10 15 23 15 40 50 15 24 15 40 100 15 , , , , and 1 Poisson with .…”

“…Recently, this author [3] developed a simple yet good approximation of the expected outdating for a fixed-life perishable inventory model with a positive lead time. This author used an extremely rough approximation of the expected inventory level per unit time since both the expected outdating of the current order size and the expected shortage quantity per cycle are assumed to be negligible in the calculation of the expected stock level.…”