A stochastic inventory model with perishable and aging items. (1999)

• Record Type: Journal Article
• Authors: Aggoun, Lakhdar; Benkherouf, Lakdere; Tadj, Lotfi
• Is Part Of: Journal of applied mathematics and stochastic analysis. Volume 12:Number 1(1999)
• Page Start: 23
• Page End: 29
• Publication Date: 1999
• Subjects: inventory control -- perishable items -- Markov models -- change of measure techniques; Mathematical models -- Periodicals; Computer simulation -- Periodicals; Computer science -- Mathematics -- Periodicals; Computer science -- Mathematics; Computer simulation; Mathematical models; Applied Mathematics; Periodicals; Electronic journals; 519.22
• DOI: 10.1155/S1048953399000039
• Languages: English
• ISSNs: 1048-9533

Abstract

Abstract : In this paper, we propose a single-product, discrete time inventory model for perishable items. Inventory levels are reviewed periodically and units in stock have a maximum lifetime of M periods. It is assumed that the dynamics of the inventory level is driven by a parameter process (reflecting perishability) and demands. By observing the history of the inventory level we obtain the conditional distribution of the perishability parameter by using the change of measure techniques. A special case is also presented.