A Fluid EOQ Model of Perishable Items with Intermittent High and Low Demand Rates

Mathematics of Operations Research - Tập 40 Số 2 - Trang 390-402 - 2015
Onno Boxma1, David Perry2, Shelemyahu Zacks3
1EURANDOM and Department of Mathematics and Computer Science, Eindhoven University of Technology, 5600 MB Eindhoven, The Netherlands
2Department of Statistics, University of Haifa, Haifa 31905, Israel
3Department of Mathematical Sciences, Binghamton University, Binghamton, New York 13902

Tóm tắt

We consider a stochastic fluid EOQ-type model with demand rates operating in a two-state random environment. This environment alternates between exponentially distributed periods of high demand and generally distributed periods of low demand. The inventory level starts at some level q, and decreases linearly at rate βH during the periods of high demand, and at rate βL < βH at periods of low demand. Refilling of the inventory level to level q is required when the first of two events takes place: Either the buffer level reaches zero, or the buffer content becomes outdated. If such an event occurs during a high demand period, an order is instantaneously placed; otherwise, ordering is postponed until the beginning of the next high demand period. We determine the steady-state distribution of the inventory level, as well as other quantities of interest such as the distribution of the time until a refill is required. Finally, for a given cost/revenue structure, we determine the long-run average profit, and we consider the problem of choosing q such that the profit is optimized.

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Thông tin xuất bản

Mathematics of Operations Research

Tập 40 Số 2

390-402

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