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December 10, 2016
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Sapna Isotupa


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Sapna Isotupa

Optimal service rates of a service facility with perishable inventory items (ABSTRACT)

Berman, O., & Sapna Isotupa, K.P.

published: 2002 | Research publication | Refereed Journals - ODS

Berman, O., & Sapna Isotupa, K.P. (2002). "Optimal service rates of a service facility with perishable inventory items". Naval Research Logistics, 49 (5), 464-482.

ABSTRACT:  In this paper we optimally control service rates for an inventory system of service facilities with perishable products. We consider a finite capacity system where arrivals are Poisson-distributed, lifetime of items have exponential distribution, and replenishment is instantaneous. We determine the service rates to be employed at each instant of time so that the long-run expected cost rate is minimized for fixed maximum inventory level and capacity. The problem is modelled as a semi-Markov decision problem. We establish the existence of a stationary optimal policy and we solve it by employing linear programming. Several numerical examples which provide insight to the behavior of the system are presented.

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