The fixed lifetime inventory system with zero or positive leadtime has being considered by various authors, with the aim of reducing the quantity outdating in the inventory system. Chiu (1995), considered the positive leadtime case by approximating the expected shortage quantity, the expected outdate quantity and the expected on hand inventory. His result was a ordering policy where are the ordered quantity and the reorder point respectively. In this work , we examine Chiu’s implementation of the model, use simple minimization method to obtain the order quantity and modify the total cost function obtained by Chiu. Also, we consider the case where the reorder point is not zero, which Chiu did not considered. Key words: outdate, shortage, leadtime, reordered point, cost function, ordering policy, fixed, lifetime.

Keywords: Outdate, shortage, lead time, reordered point, cost function, ordering policy, fixed, lifetime.