Mathematical Models for Perishable Inventory Control
Published Online: 15 FEB 2011
Copyright © 2010 John Wiley & Sons, Inc. All rights reserved.
Wiley Encyclopedia of Operations Research and Management Science
How to Cite
Nahmias, S. 2011. Mathematical Models for Perishable Inventory Control. Wiley Encyclopedia of Operations Research and Management Science. .
- Published Online: 15 FEB 2011
This article is intended to provide the reader with the fundamentals underlying the theory of managing perishable inventories. The emphasis is on the mathematical models for perishable inventory control, rather than on the application of these models. Perishable inventories constitute a huge portion of the world economy. These include virtually all foodstuffs and pharmaceuticals and many others. If we view obsolescence as a type of perishability, then most electronic items would be included in this list as well. We hope this article provides the reader with a basic understanding of the issues and mathematics underlying these models, and the tools to pursue further reading on his or her own.
- state space;
- exponential decay;
- curse of dimensionality;
- critical number policy;
- fixed order quantity