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A perishable inventory model with Markovian renewal demands

Author

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  • Lian, Zhaotong
  • Liu, Xiaoming
  • Zhao, Ning

Abstract

In the inventory model, people usually assume that the inter-demand time is independently identical distributed which may not be true in reality. Here we study an (s,S) continuous review model for items with an exponential random lifetime and a general Markovian renewal demand process. By constructing Markovian renewal equations, we derive the mean and the variance of the reorder cycle time and lead to a simple expression for the total expected long run cost rate. The numerical results illustrate the system behavior and lead to managerial insights into controlling such inventory systems.

Suggested Citation

  • Lian, Zhaotong & Liu, Xiaoming & Zhao, Ning, 2009. "A perishable inventory model with Markovian renewal demands," International Journal of Production Economics, Elsevier, vol. 121(1), pages 176-182, September.
    • Handle: RePEc:eee:proeco:v:121:y:2009:i:1:p:176-182
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    References listed on IDEAS

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    Cited by:

    1. Kouki, Chaaben & Jemaï, Zied & Minner, Stefan, 2015. "A lost sales (r, Q) inventory control model for perishables with fixed lifetime and lead time," International Journal of Production Economics, Elsevier, vol. 168(C), pages 143-157.
    2. Bakker, Monique & Riezebos, Jan & Teunter, Ruud H., 2012. "Review of inventory systems with deterioration since 2001," European Journal of Operational Research, Elsevier, vol. 221(2), pages 275-284.
    3. Kouki, Chaaben & Babai, M. Zied & Jemai, Zied & Minner, Stefan, 2016. "A coordinated multi-item inventory system for perishables with random lifetime," International Journal of Production Economics, Elsevier, vol. 181(PA), pages 226-237.
    4. Kouki, Chaaben & Jouini, Oualid, 2015. "On the effect of lifetime variability on the performance of inventory systems," International Journal of Production Economics, Elsevier, vol. 167(C), pages 23-34.
    5. Kouki, Chaaben & Sahin, Evren & Jemaï, Zied & Dallery, Yves, 2013. "Assessing the impact of perishability and the use of time temperature technologies on inventory management," International Journal of Production Economics, Elsevier, vol. 143(1), pages 72-85.
    6. Xiang, Mengyuan & Rossi, Roberto & Martin-Barragan, Belen & Tarim, S. Armagan, 2023. "A mathematical programming-based solution method for the nonstationary inventory problem under correlated demand," European Journal of Operational Research, Elsevier, vol. 304(2), pages 515-524.
    7. Umay Uzunoglu Kocer & Bahar Yalcin, 2020. "Continuous review (s, Q) inventory system with random lifetime and two demand classes," OPSEARCH, Springer;Operational Research Society of India, vol. 57(1), pages 104-118, March.
    8. Gharbi, Ali & Kenné, Jean-Pierre & Kaddachi, Rawia, 2022. "Dynamic optimal control and simulation for unreliable manufacturing systems under perishable product and shelf life variability," International Journal of Production Economics, Elsevier, vol. 247(C).
    9. Liang, Zhenglin & Liu, Bin & Xie, Min & Parlikad, Ajith Kumar, 2020. "Condition-based maintenance for long-life assets with exposure to operational and environmental risks," International Journal of Production Economics, Elsevier, vol. 221(C).

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