Abstract:
A disaster inventory system is considered in which two substitutable items are
stored for disaster management. In the event of disaster management, a particular product
may become stock-out and the situation warrants that a demand for the particular product
during its stock-out period may be substituted with another available similar product in the
inventory. From the utility point of view, continuous review inventory models are quite
appro-priate in disaster inventory management. In this paper, a continuous review two
substitutable perishable product disaster inventory model is proposed and analyzed. Since
the inventory is maintained for disaster management, an adjustable joint reordering policy
for replenishment is adopted. There is no lead time and the replenishment is
instantaneous. For this model, some measures of system performance are obtained. The
stationary behavior of the model is also considered. Numerical examples are also provided
to illustrate the results obtained.
