An Economic Lot Size Model for Perishable Products with Age-Dependent Inventory and Backorder Costs

This paper presents an Economic Lot Size (ELS) model for perishable products where the costs of holding inventory stocks (having backorders) in each period depend on the age of inventories (backorders). We propose a polynomial-time dynamic programming algorithm to solve two structured problems, one with non-decreasing demands and the other with non-decreasing marginal backorder cost with respect to the age of the backorder. Our results generalize a recent study on an ELS model for perishable product but without backorders.