IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v118y2018icp445-465.html
   My bibliography  Save this article

A stochastic micro-periodic age-based inventory replenishment policy for perishable goods

Author

Listed:
  • Janssen, Larissa
  • Diabat, Ali
  • Sauer, Jürgen
  • Herrmann, Frank

Abstract

In this paper, we propose a micro-periodic inventory replenishment policy for quickly perishable goods with fixed and known lifetime of items, deterministic lead time, fixed given order cycle, mixed issuing policies (FIFO and LIFO), age-based stock, imperfect items and target customer service level under random demand. The inventory policy is based on time of day (morning, midday, afternoon or evening). The results of our simulation study show that the proposed micro-periodic inventory policy leads to waste reduction of 66% as well as a partial decrease in cost compared to inventory policy with planning on a daily basis.

Suggested Citation

  • Janssen, Larissa & Diabat, Ali & Sauer, Jürgen & Herrmann, Frank, 2018. "A stochastic micro-periodic age-based inventory replenishment policy for perishable goods," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 445-465.
    • Handle: RePEc:eee:transe:v:118:y:2018:i:c:p:445-465
    DOI: 10.1016/j.tre.2018.08.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554518300486
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2018.08.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ford W. Harris, 1990. "How Many Parts to Make at Once," Operations Research, INFORMS, vol. 38(6), pages 947-950, December.
    2. Hajo Rijgersberg & Seth Tromp & Liesbeth Jacxsens & Mieke Uyttendaele, 2010. "Modeling Logistic Performance in Quantitative Microbial Risk Assessment," Risk Analysis, John Wiley & Sons, vol. 30(1), pages 20-31, January.
    3. Haijema, René, 2013. "A new class of stock-level dependent ordering policies for perishables with a short maximum shelf life," International Journal of Production Economics, Elsevier, vol. 143(2), pages 434-439.
    4. Harvey M. Wagner & Thomson M. Whitin, 2004. "Dynamic Version of the Economic Lot Size Model," Management Science, INFORMS, vol. 50(12_supple), pages 1770-1774, December.
    5. Harvey M. Wagner, 2004. "Comments on ÜDynamic Version of the Economic Lot Size ModelÝ," Management Science, INFORMS, vol. 50(12_supple), pages 1775-1777, December.
    6. Steven Nahmias, 1982. "Perishable Inventory Theory: A Review," Operations Research, INFORMS, vol. 30(4), pages 680-708, August.
    7. Janssen, Larissa & Claus, Thorsten & Sauer, Jürgen, 2016. "Literature review of deteriorating inventory models by key topics from 2012 to 2015," International Journal of Production Economics, Elsevier, vol. 182(C), pages 86-112.
    8. Goyal, S. K. & Giri, B. C., 2001. "Recent trends in modeling of deteriorating inventory," European Journal of Operational Research, Elsevier, vol. 134(1), pages 1-16, October.
    9. Haijema, Rene, 2014. "Optimal ordering, issuance and disposal policies for inventory management of perishable products," International Journal of Production Economics, Elsevier, vol. 157(C), pages 158-169.
    10. Alawneh, Fawzat & Zhang, Guoqing, 2018. "Dual-channel warehouse and inventory management with stochastic demand," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 112(C), pages 84-106.
    11. Steven Nahmias, 1975. "Optimal Ordering Policies for Perishable Inventory—II," Operations Research, INFORMS, vol. 23(4), pages 735-749, August.
    12. Rahimi, Mohammad & Baboli, Armand & Rekik, Yacine, 2017. "Multi-objective inventory routing problem: A stochastic model to consider profit, service level and green criteria," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 101(C), pages 59-83.
    13. Mark Ferguson & Michael E. Ketzenberg, 2006. "Information Sharing to Improve Retail Product Freshness of Perishables," Production and Operations Management, Production and Operations Management Society, vol. 15(1), pages 57-73, March.
    14. Mohammad Rahimi & Armand Baboli & Yacine Rekik, 2017. "Multi-objective inventory routing problem : A stochastic model to consider profit, service level and green criteria," Post-Print hal-02311993, HAL.
    15. Bakker, Monique & Riezebos, Jan & Teunter, Ruud H., 2012. "Review of inventory systems with deterioration since 2001," European Journal of Operational Research, Elsevier, vol. 221(2), pages 275-284.
    16. van Donselaar, Karel H. & Broekmeulen, Rob A.C.M., 2012. "Approximations for the relative outdating of perishable products by combining stochastic modeling, simulation and regression modeling," International Journal of Production Economics, Elsevier, vol. 140(2), pages 660-669.
    17. Tsan-Ming Choi & T. C. E. Cheng & Xiande Zhao & Jiuh-Biing Sheu, 2016. "Buyer Behavior in Quality-Dominated Multi-Sourcing Recyclable-Material Procurement of Green Supply Chains," Production and Operations Management, Production and Operations Management Society, vol. 25(3), pages 477-497, March.
    18. Duan, Qinglin & Liao, T. Warren, 2013. "A new age-based replenishment policy for supply chain inventory optimization of highly perishable products," International Journal of Production Economics, Elsevier, vol. 145(2), pages 658-671.
    19. van Donselaar, Karel H. & Broekmeulen, Rob A.C.M., 2013. "Determination of safety stocks in a lost sales inventory system with periodic review, positive lead-time, lot-sizing and a target fill rate," International Journal of Production Economics, Elsevier, vol. 143(2), pages 440-448.
    20. Harvey M. Wagner & Thomson M. Whitin, 1958. "Dynamic Version of the Economic Lot Size Model," Management Science, INFORMS, vol. 5(1), pages 89-96, October.
    21. Dai, Zhuo & Aqlan, Faisal & Gao, Kuo, 2017. "Optimizing multi-echelon inventory with three types of demand in supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 107(C), pages 141-177.
    22. Brant E. Fries, 1975. "Optimal Ordering Policy for a Perishable Commodity with Fixed Lifetime," Operations Research, INFORMS, vol. 23(1), pages 46-61, February.
    23. Tarim, S. Armagan & Kingsman, Brian G., 2004. "The stochastic dynamic production/inventory lot-sizing problem with service-level constraints," International Journal of Production Economics, Elsevier, vol. 88(1), pages 105-119, March.
    24. Steven Nahmias, 1977. "Higher-Order Approximations for the Perishable-Inventory Problem," Operations Research, INFORMS, vol. 25(4), pages 630-640, August.
    25. Vishal Gaur & Marshall L. Fisher, 2004. "A Periodic Inventory Routing Problem at a Supermarket Chain," Operations Research, INFORMS, vol. 52(6), pages 813-822, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Santosh Shekhawat & Nazek Alessa & Himanshu Rathore & Kalpna Sharma, 2022. "A Green Approach—Cost Optimization for a Manufacturing Supply Chain with MFIFO Warehouse Dispatching Policy and Inspection Policy," Sustainability, MDPI, vol. 14(21), pages 1-17, November.
    2. Luo, Na & Olsen, Tava & Liu, Yanping & Zhang, Abraham, 2022. "Reducing food loss and waste in supply chain operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 162(C).
    3. Esmizadeh, Yalda & Bashiri, Mahdi & Jahani, Hamed & Almada-Lobo, Bernardo, 2021. "Cold chain management in hierarchical operational hub networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 147(C).
    4. Yingying Zhang & Yi Chai & Le Ma, 2021. "Research on Multi-Echelon Inventory Optimization for Fresh Products in Supply Chains," Sustainability, MDPI, vol. 13(11), pages 1-15, June.
    5. Poormoaied, Saeed & Atan, Zümbül, 2020. "A multi-attribute utility theory approach to ordering policy for perishable items," International Journal of Production Economics, Elsevier, vol. 225(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gorria, Carlos & Lezaun, Mikel & López, F. Javier, 2022. "Performance measures of nonstationary inventory models for perishable products under the EWA policy," European Journal of Operational Research, Elsevier, vol. 303(3), pages 1137-1150.
    2. 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.
    3. Haijema, René & Minner, Stefan, 2019. "Improved ordering of perishables: The value of stock-age information," International Journal of Production Economics, Elsevier, vol. 209(C), pages 316-324.
    4. Janssen, Larissa & Claus, Thorsten & Sauer, Jürgen, 2016. "Literature review of deteriorating inventory models by key topics from 2012 to 2015," International Journal of Production Economics, Elsevier, vol. 182(C), pages 86-112.
    5. 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.
    6. 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.
    7. Onur Kaya & Sajjad Rahimi Ghahroodi, 2018. "Inventory control and pricing for perishable products under age and price dependent stochastic demand," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 88(1), pages 1-35, August.
    8. Kouki, Chaaben & Jouini, Oualid, 2015. "On the effect of lifetime variability on the performance of inventory systems," International Journal of Production Economics, Elsevier, vol. 167(C), pages 23-34.
    9. Li‐Ming Chen & Amar Sapra, 2021. "Inventory renewal for a perishable product: Economies of scale and age‐dependent demand," Naval Research Logistics (NRL), John Wiley & Sons, vol. 68(3), pages 359-377, April.
    10. Madhukar Nagare & Pankaj Dutta & Pravin Suryawanshi, 2020. "Optimal procurement and discount pricing for single-period non-instantaneous deteriorating products with promotional efforts," Operational Research, Springer, vol. 20(1), pages 89-117, March.
    11. Dehghani, Maryam & Abbasi, Babak & Oliveira, Fabricio, 2021. "Proactive transshipment in the blood supply chain: A stochastic programming approach," Omega, Elsevier, vol. 98(C).
    12. Broekmeulen, Rob A.C.M. & van Donselaar, Karel H., 2019. "Quantifying the potential to improve on food waste, freshness and sales for perishables in supermarkets," International Journal of Production Economics, Elsevier, vol. 209(C), pages 265-273.
    13. Minner, Stefan & Transchel, Sandra, 2017. "Order variability in perishable product supply chains," European Journal of Operational Research, Elsevier, vol. 260(1), pages 93-107.
    14. Dehghani, Maryam & Abbasi, Babak, 2018. "An age-based lateral-transshipment policy for perishable items," International Journal of Production Economics, Elsevier, vol. 198(C), pages 93-103.
    15. Kouki, Chaaben & Jemaï, Zied & Minner, Stefan, 2015. "A lost sales (r, Q) inventory control model for perishables with fixed lifetime and lead time," International Journal of Production Economics, Elsevier, vol. 168(C), pages 143-157.
    16. 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.
    17. Zahra Azadi & Harsha Gangammanavar & Sandra Eksioglu, 2020. "Developing childhood vaccine administration and inventory replenishment policies that minimize open vial wastage," Annals of Operations Research, Springer, vol. 292(1), pages 215-247, September.
    18. Xiuli Chao & Xiting Gong & Cong Shi & Huanan Zhang, 2015. "Approximation Algorithms for Perishable Inventory Systems," Operations Research, INFORMS, vol. 63(3), pages 585-601, June.
    19. Pauls-Worm, Karin G.J. & Hendrix, Eligius M.T. & Haijema, René & van der Vorst, Jack G.A.J., 2014. "An MILP approximation for ordering perishable products with non-stationary demand and service level constraints," International Journal of Production Economics, Elsevier, vol. 157(C), pages 133-146.
    20. Li‐Ming Chen & Amar Sapra, 2013. "Joint inventory and pricing decisions for perishable products with two‐period lifetime," Naval Research Logistics (NRL), John Wiley & Sons, vol. 60(5), pages 343-366, August.

    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:eee:transe:v:118:y:2018:i:c:p:445-465. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    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.