AN (S − 1, S) Inventory System with Fixed Shelf Life and Constant Lead Times

Perry, David; Posner, M. J. M.

doi:10.1287/opre.46.3.s65

Cited by 34 publications

(23 citation statements)

References 9 publications

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“…This connection lays the groundwork for further research on PIS from a queueing perspective (e.g. [14,25,23,19]). As for the model considered in this paper, the management becomes much more intricate due to the one-sided interplay between the two types of items.…”

Section: Introductionmentioning

confidence: 76%

Two perishable inventory systems with one-way substitution

2016

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Motivated by the ABO issue of the blood banks system, in which the portions stored have constant shelf life, we consider two subsystems of perishable inventory. The two Perishable Inventory Subsystems -PIS A and PIS B, are correlated to each other through a so-called one-way substitution of demands. Specifically, the input streams and the demand streams applied to each subsystem are four Poisson processes which are independent of one another. However, if the shelf of PIS A (blood of type O) is empty of items an arriving demand of type A is unsatisfied, since demand of type A cannot be satisfied by an item of type B (blood portions of type AB), but if the shelf of PIS B is empty of items an arriving demand of type B is applied to PIS A, since demands of type B can be satisfied by both types. Such a one-way substitution of the issuing policy generates for PIS A a modulated Poisson demand process operating in a two-state non-Markovian environment. The performance analysis of PIS B is known from previous work. Hence, in this study we focus on the marginal performance analysis of PIS A. Based on a fluid formulation and a Markovian approximation for the one-way substitution demands process, we develop a unified approach to efficiently and accurately approximate the performance of PIS A. The effectiveness of the approach is investigated by extensive numerical experiments.

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Section: Introductionmentioning

confidence: 76%

Two perishable inventory systems with one-way substitution

2016

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“…The techniques adopted include: dynamic programming (Fries [6], Nahmias [7,8]); heuristic (Nahmias [9], Nandakumar and Morton [10]); Markov chain (Chazan and Gal [11], Brodheim et al [12], Cohen [13]); application of queueing theory (Graves [14], Perry and Posner [15]); and simulation (Jennings [16]). …”

Section: Literature Reviewmentioning

confidence: 99%

“…Chiu [21] could not prove that the cost function was convex but gave an iterative method for solving the problem. Perry and Posner [15] proposed an ðS À 1; SÞ policy for the fixed lifetime perishable inventory and constant lead-times. The method requires the solution of an integral equation with an unknown function.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The method requires the solution of an integral equation with an unknown function. To specify the unknown function, Perry and Posner [15] PERISHABLE INVENTORY SYSTEMS 1171 made the following assumptions: ''the process is sufficiently old so that all items have distinct ages. Then, for an arbitrary time t, we assume that the demand process is stopped''.…”

Section: Literature Reviewmentioning

confidence: 99%

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Determination Of Outdate And Shortage Quantities In The Inventory Problem With Fixed Lifetime

Omosigho

2002

International Journal of Computer Mathematics

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The fixed lifetime perishable inventory system is examined and an estimator for the probability that an item will be sold in a period is obtained. The estimator for the probability that an item will be sold is given by W=S where W is the average demand per period and S is the inventory level at the start of a period. The probability is used to derive outdate and shortage quantities. Furthermore, shortage-outdate operating curve is obtained. The probability of running out of stock is obtained from the demand distribution. The operating characteristics obtained in this paper are very important because, for practical problems, available mathematically optimal solutions to the fixed lifetime perishable inventory problem cannot be realized due to their computational complexity. Guidelines for managing a real fixed lifetime perishable inventory system are given. A computer program has also been developed to compute the operating characteristics.

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“…The leftover stocks become worthless if not sold by a specific deadline. Some of the literature in this research stream includes Perry and Posner [18], Hwang and Hahn [12], Zhou and Yang [27], and Lütke Entrup et al [14]. The aforementioned literature, however, only deals with perishable items subject to either the effect of random lifetime, i.e., decay during the selling period, or the effect of fixed lifetime, i.e., the presence of an expiration date.…”

Section: Introductionmentioning

confidence: 99%

Coordinated Pricing and Base-Stock Policies for an Item With Price and Stock-Dependent Demand Subject to Decay and Fixed Lifetime

Chen¹,

Chien

2009

Journal of the Chinese Institute of Industrial Engineers

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We consider a firm who sells a perishable item that is subject to effects of decay and fixed shelf lifetime, facing a price and stock-level dependent demand rate. We assume the firm adopts the base-stock replenishment and the first-in-first-out issuing policies. Our model is a generalized version of the previous work by considering the retail price as a decision variable and taking into account the effect of decay. The objective of the model is to jointly determine the optimal selling price, base-stock level, and inventory cycle over an infinite planning horizon so that the net profit per time unit is maximized. The profit-maximizing problem is formulated as a multivariate optimization model, solved by an iterative search process combined with an enumeration scheme. An intensive numerical study shows that the pricing scheme can be an effective mechanism in profit improvement.

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AN (S − 1, S) Inventory System with Fixed Shelf Life and Constant Lead Times

Cited by 34 publications

References 9 publications

Two perishable inventory systems with one-way substitution

Two perishable inventory systems with one-way substitution

Determination Of Outdate And Shortage Quantities In The Inventory Problem With Fixed Lifetime

Coordinated Pricing and Base-Stock Policies for an Item With Price and Stock-Dependent Demand Subject to Decay and Fixed Lifetime

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