Perishable Inventory System with a Finite Population and Repeated Attempts

Abstract In this article, we consider a two commodity continuous review perishable inventory system with a finite number of homogeneous sources of demands. The maximum storage capacity of units for the commodity . The life time of items of each commodity is assumed to be exponentially distributed with parameter . The time points of primary demand occurrences form independent quasi random distributions each with parameter A joint reordering policy is adopted with a random lead time for orders with exponential distribution. When the inventory position of both commodities are zero, any arriving primary demand enters into an orbit. The demands in the orbit send out signals to compete for their demand which is distributed as exponential. We assume that the two commodities are both way substitutable. The joint probability distribution for both commodities and number of demands in the orbit is obtained for the steady state case. Various system performance measures are derived, and the results are illustrated with numerical examples.