Extended Abstract of Perishable Inventory Model for Postponed Demand with Reworks

This paper analyzes an inventory model for perishable items with stochastic demand and items deteriorates with a constant rate θ. we consider an inventory system with rework where service warranty is provided for limited period of time. In most of the inventory models, a single stock is considered from where items are served for the customers. Here two stocks are considered. First one is for fresh items and the second one is for returned items. It is assumed that inventory level for the fresh and returned items are predetermined and finite. When inventory level reaches at s a replenishment takes place with parameter  . Arrivals of customers for fresh items form a Poisson process with parameter ξ . When inventory level reaches zero due to demands for fresh items, further demands are sent to a pool with maximum capacity W (