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Expiration dates and order quantities for perishables

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  • Ketzenberg, Michael
  • Gaukler, Gary
  • Salin, Victoria

Abstract

We address the problem of how to set expiration dates for perishable products in the context of a retailer that sells a random lifetime product under periodic review. Although the lifetime is random, the retailer, in addition to deciding when and how much to order, must also determine an expiration date that corresponds to the maximum number of periods that inventory may remain available for sale before it must be discarded. Unlike other models of perishable inventory, but similar to real-world processes, it is possible to unknowingly sell products that have reached the limit of their retail shelf life, or to discard products that are still good for sale. As a result, retailers must balance hazard costs and perishing costs by setting a remaining shelf life that provides customers with a reasonable time for storage at home before the product actually spoils.

Suggested Citation

  • Ketzenberg, Michael & Gaukler, Gary & Salin, Victoria, 2018. "Expiration dates and order quantities for perishables," European Journal of Operational Research, Elsevier, vol. 266(2), pages 569-584.
    • Handle: RePEc:eee:ejores:v:266:y:2018:i:2:p:569-584
    DOI: 10.1016/j.ejor.2017.10.005
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    References listed on IDEAS

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    Cited by:

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    3. Yang, Ya & Chi, Huihui & Tang, Ou & Zhou, Wei & Fan, Tijun, 2019. "Cross perishable effect on optimal inventory preservation control," European Journal of Operational Research, Elsevier, vol. 276(3), pages 998-1012.
    4. Siawsolit, Chokdee & Gaukler, Gary M., 2021. "Offsetting omnichannel grocery fulfillment cost through advance ordering of perishables," International Journal of Production Economics, Elsevier, vol. 239(C).
    5. Fikar, Christian & Mild, Andreas & Waitz, Martin, 2021. "Facilitating consumer preferences and product shelf life data in the design of e-grocery deliveries," European Journal of Operational Research, Elsevier, vol. 294(3), pages 976-986.
    6. Kouki, Chaaben & Legros, Benjamin & Zied Babai, M. & Jouini, Oualid, 2020. "Analysis of base-stock perishable inventory systems with general lifetime and lead-time," European Journal of Operational Research, Elsevier, vol. 287(3), pages 901-915.
    7. Gaukler, Gary M. & Zuidwijk, Rob A. & Ketzenberg, Michael E., 2023. "The value of time and temperature history information for the distribution of perishables," European Journal of Operational Research, Elsevier, vol. 310(2), pages 627-639.

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