On discrete-in-time probabilistic scheduling period inventory system for deteriorating items with instantaneous demand

Abstract

A probabilistic scheduling period inventory system is considered for continuously deteriorating items in which the demand is assumedto occur instantaneously at the beginning of the scheduling period, shortages are not allowed, deterioration is assumed to be a constant fraction of the on hand inventory and timeis treated as a discrete variable. Three inventory models are developed, viz. a model with no lead time, a model with a deterministic lead time and a model with a lead time equal to a multiple of the scheduling period. Examples are given to illustrate the derived results.