Combating the effects of delay in periodic-review perishable inventory systems

The paper considers the problem of providing efficient control of periodic-review production-inventory systems with perishable goods and nonnegligible delivery time. The paper investigates formally the classical delay compensation mechanisms used in inventory control and shows deficiencies of inventory position and Smith predictor in the systems with deteriorating stock. Then, a new delay compensation mechanism is developed and nonlinear control law synthesized. The proposed control scheme is proved robust with respect to unpredictable demand and delay variations.