Advanced

Inventory problems with perishable items: Fixed lifetimes and backlogging

Olsson, Fredrik LU and Tydesjö, Patrik LU (2010) In European Journal of Operational Research 202(1). p.131-137
Abstract
Our model deals with a single-product and a single-stock location with Poisson demand. The replenishment leadtime from the external supplier is fixed. The lifetime of the product is also fixed, and aging is assumed to begin when the order is placed. When the age of a unit has reached its lifetime, the unit is useless and thus discarded from the system. The replenishment policy is assumed to be an order-up-to S-policy. Demand that cannot be met immediately is backordered. We consider three different cases where the service requirements are represented by: (1) backorder costs per unit, (2) a service level constraint. (3) backorder costs per unit and time unit. Cases 1 and 2 are solved exactly, while an approximation is developed for case 3.... (More)
Our model deals with a single-product and a single-stock location with Poisson demand. The replenishment leadtime from the external supplier is fixed. The lifetime of the product is also fixed, and aging is assumed to begin when the order is placed. When the age of a unit has reached its lifetime, the unit is useless and thus discarded from the system. The replenishment policy is assumed to be an order-up-to S-policy. Demand that cannot be met immediately is backordered. We consider three different cases where the service requirements are represented by: (1) backorder costs per unit, (2) a service level constraint. (3) backorder costs per unit and time unit. Cases 1 and 2 are solved exactly, while an approximation is developed for case 3. We show how the results from an earlier paper assuming lost sales can be used to solve the considered problems. Our results are compared to the results in a related paper considering (Q, r)-policies. (C) 2009 Elsevier B.V. All rights reserved. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Stochastic, Inventory control, Perishable items
in
European Journal of Operational Research
volume
202
issue
1
pages
131 - 137
publisher
Elsevier
external identifiers
  • wos:000271700800016
  • scopus:70349739198
ISSN
0377-2217
DOI
10.1016/j.ejor.2009.05.010
language
English
LU publication?
yes
id
8032ef2d-e533-4af9-b1d3-0f48976917b6 (old id 1535768)
date added to LUP
2010-01-26 16:43:23
date last changed
2018-05-29 12:08:31
@article{8032ef2d-e533-4af9-b1d3-0f48976917b6,
  abstract     = {Our model deals with a single-product and a single-stock location with Poisson demand. The replenishment leadtime from the external supplier is fixed. The lifetime of the product is also fixed, and aging is assumed to begin when the order is placed. When the age of a unit has reached its lifetime, the unit is useless and thus discarded from the system. The replenishment policy is assumed to be an order-up-to S-policy. Demand that cannot be met immediately is backordered. We consider three different cases where the service requirements are represented by: (1) backorder costs per unit, (2) a service level constraint. (3) backorder costs per unit and time unit. Cases 1 and 2 are solved exactly, while an approximation is developed for case 3. We show how the results from an earlier paper assuming lost sales can be used to solve the considered problems. Our results are compared to the results in a related paper considering (Q, r)-policies. (C) 2009 Elsevier B.V. All rights reserved.},
  author       = {Olsson, Fredrik and Tydesjö, Patrik},
  issn         = {0377-2217},
  keyword      = {Stochastic,Inventory control,Perishable items},
  language     = {eng},
  number       = {1},
  pages        = {131--137},
  publisher    = {Elsevier},
  series       = {European Journal of Operational Research},
  title        = {Inventory problems with perishable items: Fixed lifetimes and backlogging},
  url          = {http://dx.doi.org/10.1016/j.ejor.2009.05.010},
  volume       = {202},
  year         = {2010},
}