Perishable products.
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Fixed lifetime
Fixed shelf life Age dependent
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During the planning horizon, Products are hold in stock for a specified
length of time, after which they must be removed
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Red blood cells, most packaged foods, canned goods, photographic film,
and drugs.
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Obsolescence
Seasonal items
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At the end of the planning horizon (known or uncertain), products are
abruptly reduced in price or disposed off.
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Newspapers, fashion clothes, electronics components, maps, cameras,
airline tickets
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Random lifetime,
Continuous decay,
Decaying products.
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Exponential decay
Age independent
Inventory dependent.
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A fixed fraction of the inventory is lost each period regardless of its
age distribution, or lifetime of individual units is an exponential
random variable
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Fresh produce
Volatile liquids such as gasoline, alcohol, and acetone
Radioactive substances such as radiopharmaceuticals.
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Age independent |
Lifetime of units is a random variable following a
probability distribution. |
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Time dependent |
The deterioration of the inventory is a discretely or
continuously function of time. |
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