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An EOQ Model for Temperature-Sensitive Deteriorating Items in Cold Chain Operations

Author

Listed:
  • Ming-Fang Yang

    (Intelligent Maritime Research Center, National Taiwan Ocean University, Keelung City 20224, Taiwan
    Department of Transportation Science, National Taiwan Ocean University, Keelung City 20224, Taiwan)

  • Pei-Fang Tsai

    (Department of Industrial Engineering and Management, National Taipei University of Technology, Taipei 10608, Taiwan)

  • Meng-Ru Tu

    (Intelligent Maritime Research Center, National Taiwan Ocean University, Keelung City 20224, Taiwan
    Department of Transportation Science, National Taiwan Ocean University, Keelung City 20224, Taiwan)

  • Yu-Fang Yuan

    (Department of Transportation Science, National Taiwan Ocean University, Keelung City 20224, Taiwan)

Abstract

To improve the inventory management of cold chain logistics, we propose an economic order quantity (EOQ) inventory model for temperature-sensitive deteriorating products. Considering that the products are temperature-sensitive, the deterioration rate of the proposed model is a function of the temperature. In addition, the transportation cost, which is a function of the quantity ordered, is considered in this study. This article aims to find the optimal value of the total profit, selling price, and the length of the ordering cycle. Numerical examples are provided; the sensitivity analysis shows that the total profit is much more sensitive to transportation costs, compared with ordering and holding costs.

Suggested Citation

  • Ming-Fang Yang & Pei-Fang Tsai & Meng-Ru Tu & Yu-Fang Yuan, 2024. "An EOQ Model for Temperature-Sensitive Deteriorating Items in Cold Chain Operations," Mathematics, MDPI, vol. 12(5), pages 1-15, March.
    • Handle: RePEc:gam:jmathe:v:12:y:2024:i:5:p:775-:d:1351717
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    References listed on IDEAS

    as
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    2. Iao, L.C. & Hsiao, H.I. & Yang, M.F., 2013. "Temperature Monitoring for Quality Prediction and Inventory Control in Cold Chain: a Case of 18℃ Ready-to-eat Food in Taiwan," 2013 International European Forum, February 18-22, 2013, Innsbruck-Igls, Austria 164772, International European Forum on System Dynamics and Innovation in Food Networks.
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