deterioration and when an item is out of stock, its demands are partially fulfilled by the other item and all unsatisfied demand is … lost. Each substituted item incurs a cost of substitution and the demands and deterioration is considered to be …

) reserves in manufacturing. One important aspect under-looked in research is the effect of deterioration, where a reserve stock … balance typical economic costs of ordering, holding, and shortage, as well as additional costs of deterioration and preventive … measures. Our main results are showing that (i) deterioration significantly increases cost (up to 5%) and (ii) a preventive …