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Two substitutable perishable product disaster inventory systems

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Abstract

A disaster inventory system is considered in which two substitutable items are stored for disaster management. In the event of disaster management, a particular product may become stock-out and the situation warrants that a demand for the particular product during its stock-out period may be substituted with another available similar product in the inventory. From the utility point of view, continuous review inventory models are quite appropriate in disaster inventory management. In this paper, a continuous review two substitutable perishable product disaster inventory model is proposed and analyzed. Since the inventory is maintained for disaster management, an adjustable joint reordering policy for replenishment is adopted. There is no lead time and the replenishment is instantaneous. For this model, some measures of system performance are obtained. The stationary behavior of the model is also considered. Numerical examples are also provided to illustrate the results obtained.

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Acknowledgments

The authors are very much grateful to the reviewers for their constructive criticisms and suggestions which improved the content of the paper.

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Authors and Affiliations

  1. Department of Industrial & Systems Engineering, University of Pretoria, Pretoria, South Africa

    V. S. S. Yadavalli

  2. Indian Institute of Management, Bangalore, 560076, India

    Diatha Krishna Sundar

  3. Department of Mathematics, Vel Tech Rangarajan Dr. Sagunthala R&D Institute of Science and Technology, Avadi, Chennai, 600062, Tamilnadu, India

    Swaminathan Udayabaskaran

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  1. V. S. S. Yadavalli
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  2. Diatha Krishna Sundar
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  3. Swaminathan Udayabaskaran
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Correspondence to V. S. S. Yadavalli.

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Yadavalli, V.S.S., Sundar, D.K. & Udayabaskaran, S. Two substitutable perishable product disaster inventory systems. Ann Oper Res 233, 517–534 (2015). https://doi.org/10.1007/s10479-014-1783-3

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  • DOI: https://doi.org/10.1007/s10479-014-1783-3

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