IDEAS home Printed from https://ideas.repec.org/h/spr/isochp/978-1-4419-6485-4_15.html
   My bibliography  Save this book chapter

Managing Perishable and Aging Inventories: Review and Future Research Directions

In: Planning Production and Inventories in the Extended Enterprise

Author

Listed:
  • Itir Z. Karaesmen

    (American University)

  • Alan Scheller–Wolf
  • Borga Deniz

Abstract

Over the years, several companies have emerged as exemplary of “best practices” in supply chain management; for example, Wal-Mart is frequently cited as using unique strategies to lead its market. One significant challenge for Wal-Mart is managing inventories of products that frequently outdate: A significant portion of Wal-Mart’s product portfolio consists of perishable products such as food items (varying from fresh produce to dairy to bakery products), pharmaceuticals (e.g., drugs, vitamins, cosmetics), chemicals (e.g., household cleaning products), and cut flowers. Wal-Mart’s supply chain is not alone in its exposure to outdating risks – to better appreciate the impact of perishability and outdating in society at large, consider these figures: In a 2003 survey, overall unsalable costs at distributors to supermarkets and drug stores in consumer packaged goods alone were estimated at $2.57 billion, and 22% of these costs, over 500 million dollars, were due to expiration in only the branded segment (Grocery Manufacturers of America 2004). In the produce sector, the $1.7 billion US apple industry is estimated to lose $300 million annually to spoilage (Webb 2006). Note also that perishability and outdating are a concern not only for these consumer goods, but for industrial products (for instance, Chen (2006), mentions that adhesive materials used for plywood lose strength within 7 days of production), military ordnance, and blood – one of the most critical resources in health care supply chains. According to a nationwide survey on blood collection and utilization, 5.8% of all components of blood processed for transfusion were outdated in 2004 in the USA (AABB 2005).

Suggested Citation

  • Itir Z. Karaesmen & Alan Scheller–Wolf & Borga Deniz, 2011. "Managing Perishable and Aging Inventories: Review and Future Research Directions," International Series in Operations Research & Management Science, in: Karl G. Kempf & Pınar Keskinocak & Reha Uzsoy (ed.), Planning Production and Inventories in the Extended Enterprise, chapter 0, pages 393-436, Springer.
  • Handle: RePEc:spr:isochp:978-1-4419-6485-4_15
    DOI: 10.1007/978-1-4419-6485-4_15
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jake Clarkson & Michael A. Voelkel & Anna‐Lena Sachs & Ulrich W. Thonemann, 2023. "The periodic review model with independent age‐dependent lifetimes," Production and Operations Management, Production and Operations Management Society, vol. 32(3), pages 813-828, March.
    2. Özbilge, Armağan & Hassini, Elkafi & Parlar, Mahmut, 2024. "Optimal pricing and donation policy for fresh goods," European Journal of Operational Research, Elsevier, vol. 312(1), pages 198-210.
    3. Hansen, Ole & Transchel, Sandra & Friedrich, Hanno, 2023. "Replenishment strategies for lost sales inventory systems of perishables under demand and lead time uncertainty," European Journal of Operational Research, Elsevier, vol. 308(2), pages 661-675.
    4. Arzum Akkas & Dorothee Honhon, 2023. "Determining maximum shipping age requirements for shelf life and food waste management," Production and Operations Management, Production and Operations Management Society, vol. 32(7), pages 2173-2188, July.
    5. Sasanuma, Katsunobu & Delasay, Mohammad & Pitocco, Christine & Scheller-Wolf, Alan & Sexton, Thomas, 2022. "A marginal analysis framework to incorporate the externality effect of ordering perishables," Operations Research Perspectives, Elsevier, vol. 9(C).
    6. Hailun Zhang & Jiheng Zhang & Rachel Q. Zhang, 2020. "Simple Policies with Provable Bounds for Managing Perishable Inventory," Production and Operations Management, Production and Operations Management Society, vol. 29(11), pages 2637-2650, November.
    7. Shouchang Chen & Yanzhi Li & Yi Yang & Weihua Zhou, 2021. "Managing Perishable Inventory Systems with Age‐differentiated Demand," Production and Operations Management, Production and Operations Management Society, vol. 30(10), pages 3784-3799, October.
    8. Li, Yemei & Shan, Yanfei & Ling, Shuang, 2022. "Research on option pricing and coordination mechanism of festival food supply chain," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    9. Ketzenberg, Michael & Oliva, Rogelio & Wang, Yimin & Webster, Scott, 2023. "Retailer inventory data sharing in a fresh product supply chain," European Journal of Operational Research, Elsevier, vol. 307(2), pages 680-693.
    10. Hossein Abouee‐Mehrizi & Mahdi Mirjalili & Vahid Sarhangian, 2022. "Data‐driven platelet inventory management under uncertainty in the remaining shelf life of units," Production and Operations Management, Production and Operations Management Society, vol. 31(10), pages 3914-3932, October.
    11. Sadia Samar Ali & Haripriya Barman & Rajbir Kaur & Hana Tomaskova & Sankar Kumar Roy, 2021. "Multi-Product Multi Echelon Measurements of Perishable Supply Chain: Fuzzy Non-Linear Programming Approach," Mathematics, MDPI, vol. 9(17), pages 1-27, August.
    12. Sasanuma, Katsunobu & Hibiki, Akira & Sexton, Thomas, 2022. "An opaque selling scheme to reduce shortage and wastage in perishable inventory systems," Operations Research Perspectives, Elsevier, vol. 9(C).
    13. van Sambeeck, J.H.J. & van Brummelen, S.P.J. & van Dijk, N.M. & Janssen, M.P., 2022. "Optimal blood issuing by comprehensive matching," European Journal of Operational Research, Elsevier, vol. 296(1), pages 240-253.
    14. Gharbi, Ali & Kenné, Jean-Pierre & Kaddachi, Rawia, 2022. "Dynamic optimal control and simulation for unreliable manufacturing systems under perishable product and shelf life variability," International Journal of Production Economics, Elsevier, vol. 247(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:isochp:978-1-4419-6485-4_15. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.