Abstract
In this paper we consider a continuous review perishable inventory system in Multi-echelon system, which is a building block for supply chain. A (s, Q) type perishable inventory system with Poisson demand and exponential distributed lead times for items are assumed at DC (middle echelon). A one-for- one type inventory policy is assumed at retailer node (lower echelon). Demands occurring during the stock out periods are assumed to be lost. The DC replenishes their stocks with exponential distributed lead times from warehouse (upper echelon) has abundant supply source. The items are supplied to the DC in packs of Q (= S-s) items from the warehouse. The steady state probability distribution and the operating characteristics are obtained explicitly. The required algorithm is derived and it is implemented using Mat lab. The measures of system performance in the steady state are obtained.
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