Computing replenishment cycle policy parameters for a perishable item

R. Rossi, S.A. Tarim, B. Hnich, S. Prestwich

Research output: Chapter in Book/Report/Conference proceedingConference paperAcademicpeer-review

3 Citations (Scopus)

Abstract

In many industrial environments there is a significant class of problems for which the perishable nature of the inventory cannot be ignored in developing replenishment order plans. Food is the most salient example of a perishable inventory item. In this work, we consider the periodic-review, single-location, single-product production/inventory control problem under non-stationary stochastic demand and service level constraints. The product we consider can be held in stock for a limited amount of time after which it expires and it must be disposed of at a cost. In addition to wastage costs, our cost structure comprises fixed and unit variable ordering costs, and inventory holding costs. We propose an easy-to-implement replenishment cycle inventory control policy that yields at most 2N control parameters, where N is the number of periods in our planning horizon. We also show, on a simple numerical example, the improvement brought by this policy over two other simpler inventory control rules of common use.
Original languageEnglish
Title of host publication24th Mini Euro Conference on Continuous Optimization and Information-Based Technologies in The Financial Sector, Izmir, Turkey, 23-26 June 2010
EditorsR. Kasimbeyli, S. Dincer, Selin Özpeynirci, Leonidas Sakalauskas
Place of PublicationIzmir, Turkey
PublisherIzmir University of Economics
Pages241-247
Publication statusPublished - 2010
Event24th MEC-EurOPT-2010, Izmir, Turkey -
Duration: 23 Jun 201026 Jun 2010

Conference

Conference24th MEC-EurOPT-2010, Izmir, Turkey
Period23/06/1026/06/10

Fingerprint Dive into the research topics of 'Computing replenishment cycle policy parameters for a perishable item'. Together they form a unique fingerprint.

Cite this