Investigation of Perishable Stochastic Inventory System in anInfinite Pool System

An Effective Cost Optimization Model

Abstract

An (s, S) inventory system with service facilities has been examined in this study. Demands arrive as a Poisson process with parameter  (>0) to an infinite capacity pool at any given time t. When the Inventory is greater than the buffer size a customer will transfer to the buffer with a rate . The service time is considered to be exponentially distributed with parameter . The inventory level is likewise presumed to be S at first. When the inventory level reaches s as a result of service, or due to perishability of the inventory, a replenishment order is taken place. With the parameter , the lead time is exponentially distributed. In this final model, a stability condition based on that same system performance measure has been investigated. Some numerical illustrations are provided and sensitivity analyses are made concerning different parameters involved in the present system.