Inventory problems with perishable items: Fixed lifetimes and backlogging

Fredrik Olsson, Patrik Tydesjö

Research output: Contribution to journalArticlepeer-review


Our model deals with a single-product and a single-stock location with Poisson demand. The replenishment leadtime from the external supplier is fixed. The lifetime of the product is also fixed, and aging is assumed to begin when the order is placed. When the age of a unit has reached its lifetime, the unit is useless and thus discarded from the system. The replenishment policy is assumed to be an order-up-to S-policy. Demand that cannot be met immediately is backordered. We consider three different cases where the service requirements are represented by: (1) backorder costs per unit, (2) a service level constraint. (3) backorder costs per unit and time unit. Cases 1 and 2 are solved exactly, while an approximation is developed for case 3. We show how the results from an earlier paper assuming lost sales can be used to solve the considered problems. Our results are compared to the results in a related paper considering (Q, r)-policies. (C) 2009 Elsevier B.V. All rights reserved.
Original languageEnglish
Pages (from-to)131-137
JournalEuropean Journal of Operational Research
Issue number1
Publication statusPublished - 2010

Subject classification (UKÄ)

  • Transport Systems and Logistics
  • Probability Theory and Statistics

Free keywords

  • Stochastic
  • Inventory control
  • Perishable items


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