Abstract

In this article we analyze a lost sales two-commodity perishable inventory system, under Poisson demands and exponential lifetimes. The maximum inventory level for the i-th commodity is fixed as . If the total net inventory level drops to a prefixed level  , an order will be placed for  units of -th commodity . The lead time for replenishment is assumed to be exponential. The limiting probability distribution for joint inventory level, mean inventory levels and mean reorder rates and mean shortage rates in the steady state are computed. The total cost function is expressed in terms of system performance measures obtained. The results are illustrated numerically.

Key words : Perishable item, Joint replenishment, Stochastic lead time, Markov process.

Abbreviation

AMS Mathematics Subject Classification:  60J27, 90B05.