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Inventory theory is a(n) research topic. Over the lifetime, 3524 publication(s) have been published within this topic receiving 86564 citation(s). The topic is also known as: Inventory theory. Keywords Perishable items · Continuous review · Stochastic (s,S) · Inventory system ·Kella-Whitt martingale ·Fluid approximation 1 Introduction The importance of inventory management in modern industries is well known. The classical inventory theory did not take into account that items are perishable. How- This paper provides an alternative perspective on perishable inventory theory, which conforms to the multidimensional nature of supply chains and real businesses. In this research, single-echelon and continuous review models are studied. We first evaluate the characteristics In light of those purposes, the paper first reviews and identifies the key issues on the literature of perishable inventory management. In section 3, the research problem and mathematical formulation are established. Section 4 proposes simulation method as a solution for the model. The contributions and conclusions are discussed in section 5. 2. One of the major reasons is that inventory models that include lost sales are more difficult to analyze and to perform computations on compared to backorder models. Namely, the inventory level (inventory on hand minus backorders) cannot be negative in lost-sales models. Therefore, lost-sales systems require a different type of research approach. Nahmias (2011) [233] and Karaesmen et al. [163] provide literature reviews of relevant and research-stimulating works on the issues of `Perishable Inventory Systems' or `Managing perishable and aging inventories'. The main focus of the literature review of Pahl et al. [243] and Amorim [12] is production planning. reviews of relevant and research-stimulating works on the issues of 'Perishable Inventory Systems' or 'Managing perishable and aging inventories'. The main focus of the literature review of Pal et al. (2014) and Amorim et al. (2011) is production planning. However, Pahl et al. include additional papers on the topic of PDF | This article provides an introduction to the management of perishable items. We first highlight some key differences between inventory models for nonperishable items and models for perishable ones. Next, several models for inventory management of perishable items are discussed. An important observation from this discussion is the need for finding effective heuristics for the optimal [2] H. N. Chiu, "An Approximation to the Continuous Review Inventory Model with Perishable Items and Lead Times," European Journal of Operations Research, Vol. 87, Issue 1, 1995, pp. 93-108. [3] H. N. Chiu, "A Good Approximation of the Inventory Level in a (,) Perishable Inventory System", Rairi Operations Research, Vol. Downloadable! This paper reviews the relevant literature on the problem of determining suitable ordering policies for both fixed life perishable inventory, and inventory subject to continuous exponential decay. We consider both deterministic and stochastic de
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