A single period model for a multiproduct perishable inventory system with economic substitution

This paper develops a single period model for a specific class of multiproduct perishable inventory systems where demands are interdependent. This class of inventory systems has the property that there is economic substitution between products. It is shown that the optimal policy has the economic substitution property, and that the rate of substitution is age dependent. The model serves as a generalization of a theorem discovered by Ignall and Veinott.