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RFID and perishable inventory management with shelf-space and freshness dependent demand

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  • Piramuthu, Selwyn
  • Zhou, Wei

Abstract

Although there is an extensive set of literature on inventory management for perishable items, a majority of these operate at a higher level where all items are assumed to have a fixed shelf-life. However, depending on how they are handled in transit as well as during storage, the remaining shelf-life of perishable items can vary. We consider perishable inventory management with demand that is directly dependent on the amount of shelf-space allocated to the item of interest as well as its instantaneous quality. We assume the existence of detailed information at the item-level generated through auto-ID technology such as RFID with necessary sensors. Specifically, we extend the model in Bai and Kendall (2008) to incorporate item-level quality information and use Genetic Algorithms to solve our model. Our results show that the incorporation of item quality increases the resulting overall profit to the retailer.

Suggested Citation

  • Piramuthu, Selwyn & Zhou, Wei, 2013. "RFID and perishable inventory management with shelf-space and freshness dependent demand," International Journal of Production Economics, Elsevier, vol. 144(2), pages 635-640.
    • Handle: RePEc:eee:proeco:v:144:y:2013:i:2:p:635-640
    DOI: 10.1016/j.ijpe.2013.04.035
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    References listed on IDEAS

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