(s, S) continuous review models for products with fixed lifetimes

Liming LIU, Zhaotong LIAN

Research output: Journal PublicationsJournal Article (refereed)

66 Citations (Scopus)

Abstract

We analyze an (s, S) continuous review perishable inventory system with a general renewal demand process and instantaneous replenishments. Though continuous review systems seem more amenable to optimization analysis than do periodic review systems, the existing literature addressing this type of model is rather limited. This limitation motivated us to seek greater understanding of this important class of inventory models. Using a Markov renewal approach, we obtain closed-form solutions for the steady state probability distribution of the inventory level and system performance measures. We then construct a closed-form expected cost function. Useful analytical properties for the cost function are identified and extensive computations are conducted to examine the impact of different parameters. The numerical results illustrate the system behavior and lead to managerial insights into controlling such inventory systems.

Original languageEnglish
Pages (from-to)150-158
Number of pages9
JournalOperations Research
Volume47
Issue number1
DOIs
Publication statusPublished - 1999
Externally publishedYes

Fingerprint

Cost functions
Probability distributions
Continuous review
Cost function
Renewal
Inventory systems
Periodic review
Probability distribution
Closed-form solution
Replenishment
Inventory model
Performance measures

Keywords

  • Continuous review
  • Inventory/production: perishable
  • Markov renewal

Cite this

LIU, Liming ; LIAN, Zhaotong. / (s, S) continuous review models for products with fixed lifetimes. In: Operations Research. 1999 ; Vol. 47, No. 1. pp. 150-158.
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(s, S) continuous review models for products with fixed lifetimes. / LIU, Liming; LIAN, Zhaotong.

In: Operations Research, Vol. 47, No. 1, 1999, p. 150-158.

Research output: Journal PublicationsJournal Article (refereed)

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