Journal of Applied Mathematics and Stochastic Analysis
Volume 12 (1999), Issue 1, Pages 23-29
doi:10.1155/S1048953399000039
Abstract
In this paper, we propose a single-product, discrete time inventory model
for perishable items. Inventory levels are reviewed periodically and units
in stock have a maximum lifetime of M periods. It is assumed that the
dynamics of the inventory level is driven by a parameter process (reflecting perishability) and demands. By observing the history of the inventory
level we obtain the conditional distribution of the perishability parameter
by using the change of measure techniques. A special case is also presented.