Abstract
We consider a continuous review perishable inventory system at a service facility with a finite waiting capacity. The maximum inventory level is fixed and the customers arrive according to a Markov arrival process. The life time of each item and the service time are assumed to have independent exponential distributions. Unlike the conventional method of placing an order at a prefixed level, we consider a set of reorder levels with a specified probability for placing an order at a particular reorder level. This allows the modelling of a situation in which the decision maker may advance or postpone the placement of reorder as a result of his/her memory on the past supply behaviour. The reordering quantity depends upon the reorder level at which an order was triggered and the lead time is distributed as negative exponential. The joint probability distribution of the number of customers in the system and the inventory level is obtained in the steady state. We also derive some stationary system performance measures and compute the total expected cost rate under a cost structure. We also present a numerical illustration.
Highlights
In most of the inventory models considered in the literature, the demanded items are directly delivered from the stock
In the case of inventories maintained at service facilities, a demanded item is delivered to the customer after some service time
They assumed that service times are exponentially distributed with a mean inter-arrival time which is assumed to be larger than the mean service time and that each service requires one item from the inventory
Summary
In most of the inventory models considered in the literature, the demanded items are directly delivered from the stock (if available). Berman and Kim (1999) analyzed a problem in a stochastic environment where customers arrive at a service facility according to a Poisson process They assumed that service times are exponentially distributed with a mean inter-arrival time which is assumed to be larger than the mean service time and that each service requires one item from the inventory. Berman and Sapna (2000) studied an inventory control problem at a service facility which requires one item of the inventory They assumed Poisson arrivals, arbitrarily distributed service times and zero lead times. Schwarz et al (2006) considered an inventory system with Poisson demand, exponentially distributed service time and deterministic and randomized ordering policies In all these models, the reorder level and reordering quantity remain fixed.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
