Abstract
In this paper, we propose to apply hidden Markov model (HMM) in modelling an inventory system for deteriorating items. Each item in the inventory has certain chance to deteriorate in a fixed period of time. We propose models for both cases of deterministic and stochastic demands. With the information provided by customers, the inventory levels in the system, which are unknown, can be estimated. Numerical examples are provided to demonstrate the effectiveness of the proposed models.
Original language | English |
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Pages (from-to) | 138-155 |
Number of pages | 18 |
Journal | International Journal of Mathematics in Operational Research |
Volume | 7 |
Issue number | 2 |
DOIs | |
Publication status | Published - 24 Feb 2015 |
Keywords
- Deteriorating items
- Hidden Markov model
- HMM
- Inventory systems
ASJC Scopus subject areas
- Modelling and Simulation
- Decision Sciences(all)