Hidden Markov models for inventory systems with deteriorating items

Research output: Journal article publicationJournal articleAcademic researchpeer-review

2 Citations (Scopus)


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 languageEnglish
Pages (from-to)138-155
Number of pages18
JournalInternational Journal of Mathematics in Operational Research
Issue number2
Publication statusPublished - 24 Feb 2015


  • Deteriorating items
  • Hidden Markov model
  • HMM
  • Inventory systems

ASJC Scopus subject areas

  • Modelling and Simulation
  • General Decision Sciences


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