Optimal Ordering Policies for Continuous Review Perishable Inventory Models

This paper extends the notions of perishable inventory models to the realm of continuous review inventory systems. The traditional perishable inventory costs of ordering, holding, shortage or penalty, disposal and revenue are incorporated into the continuous review framework. The type of policy that...

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Bibliographic Details
Published in:Operations research 1980-03, Vol.28 (2), p.365-374
Main Author: Weiss, Howard J
Format: Article
Language:English
Subjects:
Average cost
Carrying costs
Cost efficiency
Cost functions
Costs and Cost Analysis
Health administration
Inventories, Hospital - economics
Inventory
Inventory control
Inventory management
Long run costs
Materials Management, Hospital - economics
Models, Theoretical
Operations Research
Optimal policy
Optimization
Orders
Perishable goods
Perishables
Poisson process
Purchasing, Hospital - economics
Revenue
Stopping distances
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Summary:This paper extends the notions of perishable inventory models to the realm of continuous review inventory systems. The traditional perishable inventory costs of ordering, holding, shortage or penalty, disposal and revenue are incorporated into the continuous review framework. The type of policy that is optimal with respect to long run average expected cost is presented for both the backlogging and lost-sales models. In addition, for the lost-sales model the cost function is presented and analyzed.
ISSN:0030-364X
1526-5463
DOI:10.1287/opre.28.2.365