A continuous review perishable system with renewal demands

This paper analyzes a lost sales (s, S) type perishable inventory system with varying ordering quantity under renewal demands. The items have constant hazard rates and the mean rate of replenishment is dependent on the order size. The techniques of semi-regenerative processes are applied to obtain the various operating characteristics. Cost optimization, which includes sensitivity analysis of various system parameters, is also discussed with numerical illustrations. © Springer Science +Business Media, Inc. 2006.