A heuristic to manage perishable inventory with batch ordering, positive lead-times, and time-varying demand

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Uittreksel

So far the literature on inventory control for perishable products has mainly focused on (near-) optimal replenishment policies for a stylized environment, assuming no lead-time, no lot-sizing, stationary demand, a first in first out withdrawal policy and/or product life time equal to two periods. This literature has given fundamental insight in the behavior and the complexity of inventory systems for perishable products. In practice, many grocery retailers have recently automated the inventory replenishment for non-perishable products. They recognize they may need a different replenishment logic for perishable products, which takes into account e.g. the age of the inventory in the system. Due to new information technologies like RFID, it now also becomes more economically feasible to register this type of information. This paper suggests a replenishment policy for perishable products which takes into account the age of inventories and which requires only very simple calculations. It will be shown that in an environment, which contains important features of the real-life retail environment, this new policy leads to substantial cost reductions compared with a base policy that does not take into account the age of inventories.
TaalEngels
Pagina's3013-3018
Aantal pagina's6
TijdschriftComputers & Operations Research
Volume36
Nummer van het tijdschrift11
DOI's
StatusGepubliceerd - 2009

Vingerafdruk

Inventory control
Cost reduction
Radio frequency identification (RFID)
Batch
Information technology
Lead
Heuristics
Inventory Control
Lot Sizing
Inventory Systems
Radio Frequency Identification
Optimal Policy
Information Technology
Demand
Time-varying demand
Lead time
Perishable products
Logic
Policy
Costs

Citeer dit

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title = "A heuristic to manage perishable inventory with batch ordering, positive lead-times, and time-varying demand",
abstract = "So far the literature on inventory control for perishable products has mainly focused on (near-) optimal replenishment policies for a stylized environment, assuming no lead-time, no lot-sizing, stationary demand, a first in first out withdrawal policy and/or product life time equal to two periods. This literature has given fundamental insight in the behavior and the complexity of inventory systems for perishable products. In practice, many grocery retailers have recently automated the inventory replenishment for non-perishable products. They recognize they may need a different replenishment logic for perishable products, which takes into account e.g. the age of the inventory in the system. Due to new information technologies like RFID, it now also becomes more economically feasible to register this type of information. This paper suggests a replenishment policy for perishable products which takes into account the age of inventories and which requires only very simple calculations. It will be shown that in an environment, which contains important features of the real-life retail environment, this new policy leads to substantial cost reductions compared with a base policy that does not take into account the age of inventories.",
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A heuristic to manage perishable inventory with batch ordering, positive lead-times, and time-varying demand. / Broekmeulen, R.A.C.M.; Donselaar, van, K.H.

In: Computers & Operations Research, Vol. 36, Nr. 11, 2009, blz. 3013-3018.

Onderzoeksoutput: Bijdrage aan tijdschriftTijdschriftartikelAcademicpeer review

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