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A hidden Markov model for an inventory system with perishable items
L. Aggoun,1 L. Benkherouf,1 and L. Tadj
11King Saud University, Dept. of Statistics and Operations Research, P.O. Box 2455, Saudi Arabia
Abstract
This paper deals with a parametric multi-period integer-valued inventory model for perishable items. Each item in the stock perishes in a given period of time with some probability. Demands are assumed to be random and the probability that an item perishes is not known with certainty. Expressions for various parameter estimates of the model are established and the problem of finding an optimal replenishment schedule is formulated as an optimal stochastic control problem.
Copyright
Copyright © 1997 Hindawi Publishing Corporation. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
