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Journal of Applied Mathematics and Stochastic Analysis, 15 :3 (2002), 235-245. FILTERING AND PREDICTING THE COST OF HIDDEN PERISHED ITEMS IN AN INVENTORY MODEL LAKHDAR AGGOUN and LAKDERE BENKHEROUF Sultan Qaboos University Department of Mathematics and Statistics P.O. Box 36, Al-Khod 123, Sultanate of Oman (Received August 2001; Revised June 2002) This paper is concerned with a discrete time, discrete state inventory mo