Optimal Control for Perishable Inventory with Partial Backlogging in a Supply Chain: MDP Approach Santhi P. K1, Elango C.2,* 1Department of Mathematics, Jayaraj Annapackiam College for Women (Autonomous), Periyakulam, Theni (D.T), Tamilnadu, India. E-mail: santhipavi05052009@gmail.com 2Department of Mathematical Sciences, Cardamom Planters’ Association College, Bodinayakanur, Tamilnadu, India. *Corresponding author E-mail: chellaelango@gmail.com
AMS Mathematics Subject Classification (2010): 90B05 Online published on 7 February, 2019. Abstract In this paper, we consider a continuous review perishable inventory control with partial backlogging at retailer in a two stage supply chain. The supply chain consists of a distribution center DC) and single retail-vendor (RV). Arrival of demands to a retailer node is assumed to be Poisson and lead times are exponentially distributed at retailer node and Distribution center with parameters μ0 and μ1respectively. The items are supplied to the retailer in packs of fixed size. The system is formulated as a Markov Decision Process (MDP). A stationary cost structure is imposed and an optimal stationary policy is obtained by using Linear Programming technique. Numerical examples are provided to illustrate the problem. Top Keywords Markov decision processes, supply chain management, optimal perishable inventory policy, linear programming procedure, two-stage inventory control system. Top |