Discrete inventory control in systems with perishable goods – a time‐delay system perspective

This study considers the problem of providing efficient control of periodic‐review production–inventory systems with perishable goods. The stock storage and replenishment is modelled as a first‐order process with delay subject to external perturbations. The study investigates formally the classical delay compensation mechanisms used in inventory control and shows deficiencies of inventory position and Smith predictor‐based concepts in the context of systems with deteriorating stock. Then, a new dead‐time compensation mechanism is developed and non‐linear control law synthesised. The proposed control scheme is proved robust with respect to arbitrary demand and delay variations.