Abstract
In this chapter we consider a perishable inventory system under continuous review at a bi-level service system with finite waiting hall of size N. The maximum storage capacity of the inventory is S units. We assumed that a demand for the commodity is of unit size. The arrival time points of customers form a Poisson process. The individual customer is issued a demanded item after a random service time, which is distributed as negative exponential. The effect of the two modes of operations on the system performance measures is also discussed. It is also assumed that lead time for the reorders is distributed as exponential and is independent of the service time distribution. The items are perishable in nature and the life time of each item is assumed to be exponentially distributed. The demands that occur during stock out periods are lost. The joint probability distribution of the number of customers is obtained in the steady-state case. Various system performance measures in the steady state are derived. The results are illustrated numerically.
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