Analysis of Perishable Stochastic Inventory System with Infinite Pool Capacity : An Effective Cost Optimization Model

An (s, S) inventory system with service facilities has been investigated in this study. Demands arrive as a Poisson process with parameter λ (>0) to an infinite capacity pool at any given time t. When the inventory is greater than the buffer size a customer will transfer to the buffer with rate ϕ. The service time is considered to be distributed exponentially with the parameter μ. The level of inventory is likewise presumed to be S at first. When the inventory level reaches s as a result of service, or due to perishability of the inventory, a replenishment order is taken place. With the parameter β, the lead time is distributed exponentially. The impact of various factors and cost rates have been examined in an infinite pool capacity system using sensitivity analysis