Analysis of the (Q,r) Inventory Model for Perishables with Positive Lead Times and Lost Sales

Analysis of the (Q, r) Inventory Model for Perishables with Positive Lead Times and Lost Sales

A lost sales (r, Q) inventory control model for perishables with fixed lifetime and lead time

We consider a perishable inventory system that operates under stochastic demand, constant lifetime and a constant lead time. The system employs a continuous review ðr;Q Þ inventory control policy where unfilled demands are lost. We investigate the properties of the cost function and present an approximation procedure to find the parameters r and Q that minimize the total cost. We then conduct a...

Closing the Gap: A Learning Algorithm for the Lost-Sales Inventory System with Lead Times

Introduction The periodic-review inventory control problem with lost-sales and positive lead times is one of the most fundamental yet notoriously difficult problems in the theory of inventory management (see Zipkin (2000)). The model assumes that unmet demand at the end of each period is lost, rather than being backlogged and carried over to the next period. For example, in many retail applicat...

Asymptotic Optimality of Constant-Order Policies for Lost Sales Inventory Models with Large Lead Times

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Periodic Review Inventory Control With Lost Sales and Fractional Lead Times

We introduce a single location periodic review inventory control problem with lost sales and fractional lead times. We model the optimal inventory control problem as a stochastic dynamic program and analyze properties of the objective function as well as the optimal policy. We present upper and lower bounds on the optimal policy. These bounds can readily be used in easily computable heuristics....