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Optimal service rates of a service facility with perishable inventory items

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  • O. Berman
  • K.P. Sapna

Abstract

In this paper we optimally control service rates for an inventory system of service facilities with perishable products. We consider a finite capacity system where arrivals are Poisson‐distributed, lifetime of items have exponential distribution, and replenishment is instantaneous. We determine the service rates to be employed at each instant of time so that the long‐run expected cost rate is minimized for fixed maximum inventory level and capacity. The problem is modelled as a semi‐Markov decision problem. We establish the existence of a stationary optimal policy and we solve it by employing linear programming. Several numerical examples which provide insight to the behavior of the system are presented. © 2002 Wiley Periodicals, Inc. Naval Research Logistics 49: 464–482, 2002; Published online in Wiley InterScience (www.interscience.wiley.com). DOI 10.1002/nav.10021

Suggested Citation

  • O. Berman & K.P. Sapna, 2002. "Optimal service rates of a service facility with perishable inventory items," Naval Research Logistics (NRL), John Wiley & Sons, vol. 49(5), pages 464-482, August.
    • Handle: RePEc:wly:navres:v:49:y:2002:i:5:p:464-482
    DOI: 10.1002/nav.10021
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    Cited by:

    1. Dhanya Shajin & Jaison Jacob & A. Krishnamoorthy, 2022. "On a queueing inventory problem with necessary and optional inventories," Annals of Operations Research, Springer, vol. 315(2), pages 2089-2114, August.
    2. Dhanya Shajin & Achyutha Krishnamoorthy & Agassi Z. Melikov & Janos Sztrik, 2022. "Multi-Server Queuing Production Inventory System with Emergency Replenishment," Mathematics, MDPI, vol. 10(20), pages 1-24, October.
    3. Dhanya Shajin & A. Krishnamoorthy, 2021. "On a queueing-inventory system with impatient customers, advanced reservation, cancellation, overbooking and common life time," Operational Research, Springer, vol. 21(2), pages 1229-1253, June.
    4. Dhanya Shajin & A. Krishnamoorthy & A. N. Dudin & Varghese C. Joshua & Varghese Jacob, 2020. "On a queueing-inventory system with advanced reservation and cancellation for the next K time frames ahead: the case of overbooking," Queueing Systems: Theory and Applications, Springer, vol. 94(1), pages 3-37, February.
    5. A. Krishnamoorthy & Dhanya Shajin & B. Lakshmy, 2016. "GI/M/1 type queueing-inventory systems with postponed work, reservation, cancellation and common life time," Indian Journal of Pure and Applied Mathematics, Springer, vol. 47(2), pages 357-388, June.
    6. Hanukov, Gabi & Avinadav, Tal & Chernonog, Tatyana & Yechiali, Uri, 2019. "Performance improvement of a service system via stocking perishable preliminary services," European Journal of Operational Research, Elsevier, vol. 274(3), pages 1000-1011.
    7. A. Krishnamoorthy & R. Manikandan & B. Lakshmy, 2015. "A revisit to queueing-inventory system with positive service time," Annals of Operations Research, Springer, vol. 233(1), pages 221-236, October.
    8. Agassi Melikov & Ramil Mirzayev & Sajeev S. Nair, 2022. "Double Sources Queuing-Inventory System with Hybrid Replenishment Policy," Mathematics, MDPI, vol. 10(14), pages 1-16, July.
    9. Hanukov, Gabi & Avinadav, Tal & Chernonog, Tatyana & Yechiali, Uri, 2020. "A service system with perishable products where customers are either fastidious or strategic," International Journal of Production Economics, Elsevier, vol. 228(C).
    10. Dhanya Shajin & A. Krishnamoorthy & R. Manikandan, 2022. "On a queueing-inventory system with common life time and Markovian lead time process," Operational Research, Springer, vol. 22(1), pages 651-684, March.
    11. Mahmut Parlar & David Perry & Wolfgang Stadje, 2011. "FIFO Versus LIFO Issuing Policies for Stochastic Perishable Inventory Systems," Methodology and Computing in Applied Probability, Springer, vol. 13(2), pages 405-417, June.
    12. Hilal Al Hamadi & N. Sangeetha & B. Sivakumar, 2015. "Optimal control of service parameter for a perishable inventory system maintained at service facility with impatient customers," Annals of Operations Research, Springer, vol. 233(1), pages 3-23, October.
    13. Kangzhou Wang & Shouchang Chen & Zhibin Jiang & Weihua Zhou & Na Geng, 2021. "Capacity Allocation of an Integrated Production and Service System," Production and Operations Management, Production and Operations Management Society, vol. 30(8), pages 2765-2781, August.

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