An inventory system for perishable items with by-products

We present models for inventory systems with perishable commodities (PISs) in which the items are not scrapped after reaching their maximum lifetime but are transferred to a second PIS where they are used to satisfy another random stream of demands. We determine the steady-state distribution of the virtual death processes in the various models and point out connections to certain queueing and dam models. Copyright Springer-Verlag Berlin Heidelberg 2000