An Inventory Model for Perishable Items under Stock-Dependent Demand Rate with Constraints of Customer-Waiting Time and Budget

This paper develops a more general inventory model for perishable items with stock-dependent selling rate and partial backlogging. In the model, the backlogged demand rate is dependent on the negative inventory level during the stock out period. The main differences from the existing related models are that the present model adds two more practical constraints of maximum customer-waiting time and budget, and that the existence and uniqueness of the solution to the model is examined. A solution procedure is shown to find the optimal replenishment policy of the considered problem. At last, some numerical examples are presented to illustrate the application of the developed model