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Order quantities for perishable inventory control with non-stationary demand and a fill rate constraint

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  • Pauls-Worm, Karin G.J.
  • Hendrix, Eligius M.T.
  • Alcoba, Alejandro G.
  • Haijema, René

Abstract

We study the practical decision problem of fresh food production with a long production lead time to decide every period (e.g. week) how many items to produce. When a batch is ready for use, its items have a fixed shelf life, after which the items become waste in the sense that they cannot be sold anymore. The demand for (fresh) food products is uncertain and highly fluctuating, mainly caused by price promotions of retail organisations. We focus on cases where a so-called cycle fill rate service level requirement applies. We investigate the generation of a production plan that fixes the timing and quantity of the production for a finite time horizon. To minimise waste, one issues the oldest items first, i.e. a FIFO issuing policy. In case of out-of-stock, sales are lost.

Suggested Citation

  • Pauls-Worm, Karin G.J. & Hendrix, Eligius M.T. & Alcoba, Alejandro G. & Haijema, René, 2016. "Order quantities for perishable inventory control with non-stationary demand and a fill rate constraint," International Journal of Production Economics, Elsevier, vol. 181(PA), pages 238-246.
    • Handle: RePEc:eee:proeco:v:181:y:2016:i:pa:p:238-246
    DOI: 10.1016/j.ijpe.2015.10.009
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    Cited by:

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    5. Chua, Geoffrey A. & Mokhlesi, Reza & Sainathan, Arvind, 2017. "Optimal Discounting and Replenishment Policies for Perishable Products," International Journal of Production Economics, Elsevier, vol. 186(C), pages 8-20.
    6. Santos, Maria João & Martins, Sara & Amorim, Pedro & Almada-Lobo, Bernardo, 2022. "On the impact of adjusting the minimum life on receipt (MLOR) criterion in food supply chains," Omega, Elsevier, vol. 112(C).

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