A Fluid EOQ Model of Perishable Items with Intermittent High and Low Demand Rates

摘要

We consider a stochastic fluid EOQ-type model with demand rates operating in a two-state random environment. This environment alternates between exponentially distributed periods of high demand and generally distributed periods of low demand. The inventory level starts at some level q, and decreases linearly at rate, beta(H) during the periods of high demand, and at rate, beta(L) < beta(H) at periods of low demand. Refilling of the inventory level to level q is required when the first of two events takes place: Either the buffer level reaches zero, or the buffer content becomes outdated. If such an event occurs during a high demand period, an order is instantaneously placed; otherwise, ordering is postponed until the beginning of the next high demand period.