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A Two-Echelon Inventory Model For Perishable Items With Inflation Effects

In this paper we study a two-echelon inventory system with maximum profit objective for perishable items in which inflation effects are considered. We consider random product life and deterministic demand. Shortage is not allowed. Based on the stage in which perishable items are stocked, two models are developed. For each model, optimum order quantity is obtained and a practical example is solved. The models are evaluated through sensitivity analysis.