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Control of input and demand rates in inventory systems of perishable commodities

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  • D. Perry
  • M. J. M. Posner

Abstract

In this article we explore some problems of control of arrival and demand rates in systems of perishable items. First, a model in which the demand rate can be switched from one level to another is considered, and a corresponding optimization formulation for the control policy is developed. The model is then extended, with some variants, to one with two switchover levels. A duality equivalence between this observable Markov process based on the virtual waiting time and the equivalent nonobservable Markov process is explored and applied.

Suggested Citation

  • D. Perry & M. J. M. Posner, 1990. "Control of input and demand rates in inventory systems of perishable commodities," Naval Research Logistics (NRL), John Wiley & Sons, vol. 37(1), pages 85-97, February.
    • Handle: RePEc:wly:navres:v:37:y:1990:i:1:p:85-97
    DOI: 10.1002/1520-6750(199002)37:13.0.CO;2-F
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    References listed on IDEAS

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    1. Steven Nahmias, 1982. "Perishable Inventory Theory: A Review," Operations Research, INFORMS, vol. 30(4), pages 680-708, August.
    2. P. H. Brill & M. J. M. Posner, 1977. "Level Crossings in Point Processes Applied to Queues: Single-Server Case," Operations Research, INFORMS, vol. 25(4), pages 662-674, August.
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    Cited by:

    1. Kopach, Renata & Balcioglu, Baris & Carter, Michael, 2008. "Tutorial on constructing a red blood cell inventory management system with two demand rates," European Journal of Operational Research, Elsevier, vol. 185(3), pages 1051-1059, March.
    2. Wang, Ke-Ming & Ma, Zu-Jun, 2015. "Age-based policy for blood transshipment during blood shortage," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 80(C), pages 166-183.
    3. David Perry, 1999. "Analysis of a Sampling Control Scheme for a Perishable Inventory System," Operations Research, INFORMS, vol. 47(6), pages 966-973, December.
    4. Vahid Sarhangian & Hossein Abouee-Mehrizi & Opher Baron & Oded Berman, 2018. "Threshold-Based Allocation Policies for Inventory Management of Red Blood Cells," Manufacturing & Service Operations Management, INFORMS, vol. 20(2), pages 347-362, May.
    5. Hossein Abouee-Mehrizi & Opher Baron, 2016. "State-dependent M/G/1 queueing systems," Queueing Systems: Theory and Applications, Springer, vol. 82(1), pages 121-148, February.
    6. David Perry & M. J. M. Posner, 1998. "AN (S − 1, S) Inventory System with Fixed Shelf Life and Constant Lead Times," Operations Research, INFORMS, vol. 46(3-supplem), pages 65-71, June.
    7. M. Amirthakodi & V. Radhamani & B. Sivakumar, 2015. "A perishable inventory system with service facility and feedback customers," Annals of Operations Research, Springer, vol. 233(1), pages 25-55, October.

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