Abstract
Decay differs fundamentally from fixed life perishability. Decay means that the amount of loss due to outdating is a function of the amount of on hand inventory. The most common case is exponential decay, which means that a fixed fraction of the inventory is lost each unit of time. Decay has been studied in both continuous review and periodic review settings.
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Nahmias, S. (2011). Decaying Inventories. In: Perishable Inventory Systems. International Series in Operations Research & Management Science, vol 160. Springer, Boston, MA. https://doi.org/10.1007/978-1-4419-7999-5_8
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DOI: https://doi.org/10.1007/978-1-4419-7999-5_8
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