IDEAS home Printed from https://ideas.repec.org/a/ids/ijisma/v9y2014i1-2p110-135.html
   My bibliography  Save this article

An inventory model for continuously deteriorating agri-fresh produce: an artificial immune system-based solution approach

Author

Listed:
  • Manish Shukla
  • Sanjay Jharkharia

Abstract

This paper presents an inventory model for managing the continuously deteriorating agri-fresh produce in unorganized wholesale market. Replenishment policy is proposed assuming stochastic demand, periodic review and lost sales. Three inventory retrieval options namely first-in-first-out (FIFO), last-in-first-out (LIFO), and random retrieval (RR) are compared for the proposed replenishment policy. Considering the high problem complexity, artificial immune system (AIS)-based solution methodology is applied and tested on a new dataset generated from real life problem scenario. Results show that the proposed model can be used by wholesalers to efficiently manage the inventory of agri-fresh produce. Results also show that LIFO may be a better policy for produce which are highly perishable and have lower margins. Additionally, RR policy proved to be satisfactory irrespective of the produce characteristics. AIS outperformed when compared with the results obtained by commonly used algorithms such as genetic algorithm (GA) and simulated annealing (SA) for same problem instances.

Suggested Citation

  • Manish Shukla & Sanjay Jharkharia, 2014. "An inventory model for continuously deteriorating agri-fresh produce: an artificial immune system-based solution approach," International Journal of Integrated Supply Management, Inderscience Enterprises Ltd, vol. 9(1/2), pages 110-135.
    • Handle: RePEc:ids:ijisma:v:9:y:2014:i:1/2:p:110-135
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=64362
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    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. Sana, S. & Goyal, S. K. & Chaudhuri, K. S., 2004. "A production-inventory model for a deteriorating item with trended demand and shortages," European Journal of Operational Research, Elsevier, vol. 157(2), pages 357-371, September.
    2. Kanchanasuntorn, Kanchana & Techanitisawad, Anulark, 2006. "An approximate periodic model for fixed-life perishable products in a two-echelon inventory-distribution system," International Journal of Production Economics, Elsevier, vol. 100(1), pages 101-115, March.
    3. Kopach, Renata & Balcioglu, Baris & Carter, Michael, 2008. "Tutorial on constructing a red blood cell inventory management system with two demand rates," European Journal of Operational Research, Elsevier, vol. 185(3), pages 1051-1059, March.
    4. Mandal, Nirmal Kumar & Roy, Tapan Kumar & Maiti, Manoranjan, 2006. "Inventory model of deteriorated items with a constraint: A geometric programming approach," European Journal of Operational Research, Elsevier, vol. 173(1), pages 199-210, August.
    5. Li, Jian & Edwin Cheng, T.C. & Wang, Shouyang, 2007. "Analysis of postponement strategy for perishable items by EOQ-based models," International Journal of Production Economics, Elsevier, vol. 107(1), pages 31-38, May.
    6. Liao, Jui-Jung, 2008. "An EOQ model with noninstantaneous receipt and exponentially deteriorating items under two-level trade credit," International Journal of Production Economics, Elsevier, vol. 113(2), pages 852-861, June.
    7. Ferguson, Mark & Jayaraman, Vaidy & Souza, Gilvan C., 2007. "Note: An application of the EOQ model with nonlinear holding cost to inventory management of perishables," European Journal of Operational Research, Elsevier, vol. 180(1), pages 485-490, July.
    8. Dye, Chung-Yuan & Chang, Horng-Jinh & Teng, Jinn-Tsair, 2006. "A deteriorating inventory model with time-varying demand and shortage-dependent partial backlogging," European Journal of Operational Research, Elsevier, vol. 172(2), pages 417-429, July.
    9. Tekin, Eylem & Gurler, Ulku & Berk, Emre, 2001. "Age-based vs. stock level control policies for a perishable inventory system," European Journal of Operational Research, Elsevier, vol. 134(2), pages 309-329, October.
    10. He, Yong & Wang, Shou-Yang & Lai, K.K., 2010. "An optimal production-inventory model for deteriorating items with multiple-market demand," European Journal of Operational Research, Elsevier, vol. 203(3), pages 593-600, June.
    11. Goyal, S. K. & Giri, B. C., 2003. "The production-inventory problem of a product with time varying demand, production and deterioration rates," European Journal of Operational Research, Elsevier, vol. 147(3), pages 549-557, June.
    12. Wang, Kung-Jeng & Lin, Y.S. & Yu, Jonas C.P., 2011. "Optimizing inventory policy for products with time-sensitive deteriorating rates in a multi-echelon supply chain," International Journal of Production Economics, Elsevier, vol. 130(1), pages 66-76, March.
    13. Yang, Hui-Ling, 2006. "Two-warehouse partial backlogging inventory models for deteriorating items under inflation," International Journal of Production Economics, Elsevier, vol. 103(1), pages 362-370, September.
    14. Deng, Peter Shaohua & Lin, Robert H.-J. & Chu, Peter, 2007. "A note on the inventory models for deteriorating items with ramp type demand rate," European Journal of Operational Research, Elsevier, vol. 178(1), pages 112-120, April.
    15. Manna, S.K. & Chaudhuri, K.S., 2006. "An EOQ model with ramp type demand rate, time dependent deterioration rate, unit production cost and shortages," European Journal of Operational Research, Elsevier, vol. 171(2), pages 557-566, June.
    16. Skouri, K. & Konstantaras, I. & Papachristos, S. & Ganas, I., 2009. "Inventory models with ramp type demand rate, partial backlogging and Weibull deterioration rate," European Journal of Operational Research, Elsevier, vol. 192(1), pages 79-92, January.
    17. Hsieh, Tsu-Pang & Dye, Chung-Yuan & Ouyang, Liang-Yuh, 2008. "Determining optimal lot size for a two-warehouse system with deterioration and shortages using net present value," European Journal of Operational Research, Elsevier, vol. 191(1), pages 182-192, November.
    18. Maw-Sheng Chern & Ya-Lan Chan & Jinn-Tsair Teng, 2005. "A Comparison Among Various Inventory Shortage Models For Deteriorating Items On The Basis Of Maximizing Profit," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 22(01), pages 121-134.
    19. Wu, Kun-Shan & Ouyang, Liang-Yuh & Yang, Chih-Te, 2006. "An optimal replenishment policy for non-instantaneous deteriorating items with stock-dependent demand and partial backlogging," International Journal of Production Economics, Elsevier, vol. 101(2), pages 369-384, June.
    20. Dye, Chung-Yuan & Ouyang, Liang-Yuh & Hsieh, Tsu-Pang, 2007. "Deterministic inventory model for deteriorating items with capacity constraint and time-proportional backlogging rate," European Journal of Operational Research, Elsevier, vol. 178(3), pages 789-807, May.
    21. 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.
    22. Yang, Hui-Ling, 2005. "A comparison among various partial backlogging inventory lot-size models for deteriorating items on the basis of maximum profit," International Journal of Production Economics, Elsevier, vol. 96(1), pages 119-128, April.
    23. Lin, Chinho & Lin, Yihsu, 2007. "A cooperative inventory policy with deteriorating items for a two-echelon model," European Journal of Operational Research, Elsevier, vol. 178(1), pages 92-111, April.
    Full references (including those not matched with items on IDEAS)

    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. 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.
    2. Pahl, Julia & Voß, Stefan, 2014. "Integrating deterioration and lifetime constraints in production and supply chain planning: A survey," European Journal of Operational Research, Elsevier, vol. 238(3), pages 654-674.
    3. Pentico, David W. & Drake, Matthew J., 2011. "A survey of deterministic models for the EOQ and EPQ with partial backordering," European Journal of Operational Research, Elsevier, vol. 214(2), pages 179-198, October.
    4. M. Palanivel & R. Uthayakumar, 2016. "Two-warehouse inventory model for non-instantaneous deteriorating items with partial backlogging and inflation over a finite time horizon," OPSEARCH, Springer;Operational Research Society of India, vol. 53(2), pages 278-302, June.
    5. K. Skouri & I. Konstantaras & S. Manna & K. Chaudhuri, 2011. "Inventory models with ramp type demand rate, time dependent deterioration rate, unit production cost and shortages," Annals of Operations Research, Springer, vol. 191(1), pages 73-95, November.
    6. M. Palanivel & R. Uthayakumar, 2015. "Finite horizon EOQ model for non-instantaneous deteriorating items with price and advertisement dependent demand and partial backlogging under inflation," International Journal of Systems Science, Taylor & Francis Journals, vol. 46(10), pages 1762-1773, July.
    7. Pal, Shilpi & Mahapatra, G.S. & Samanta, G.P., 2014. "An EPQ model of ramp type demand with Weibull deterioration under inflation and finite horizon in crisp and fuzzy environment," International Journal of Production Economics, Elsevier, vol. 156(C), pages 159-166.
    8. Zeinab Sazvar & Mohammad Reza Akbari Jokar & Armand Baboli, 2014. "A new order splitting model with stochastic lead times for deterioration items," International Journal of Systems Science, Taylor & Francis Journals, vol. 45(9), pages 1936-1954, September.
    9. Chih-Te Yang & Liang-Yuh Ouyang & Kun-Shan Wu & Hsiu-Feng Yen, 2011. "An optimal replenishment policy for deteriorating items with stock-dependent demand and relaxed terminal conditions under limited storage space," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 19(1), pages 139-153, March.
    10. Chandra K. Jaggi & Sunil Tiwari & Satish K. Goel, 2017. "Credit financing in economic ordering policies for non-instantaneous deteriorating items with price dependent demand and two storage facilities," Annals of Operations Research, Springer, vol. 248(1), pages 253-280, January.
    11. Yong He & Hongfu Huang & Dong Li, 2020. "Inventory and pricing decisions for a dual-channel supply chain with deteriorating products," Operational Research, Springer, vol. 20(3), pages 1461-1503, September.
    12. Sarkar, Biswajit & Sarkar, Sumon, 2013. "Variable deterioration and demand—An inventory model," Economic Modelling, Elsevier, vol. 31(C), pages 548-556.
    13. Liao, Jui-Jung & Chung, Kun-Jen & Huang, Kuo-Nan, 2013. "A deterministic inventory model for deteriorating items with two warehouses and trade credit in a supply chain system," International Journal of Production Economics, Elsevier, vol. 146(2), pages 557-565.
    14. Alamri, Adel A. & Syntetos, Aris A., 2018. "Beyond LIFO and FIFO: Exploring an Allocation-In-Fraction-Out (AIFO) policy in a two-warehouse inventory model," International Journal of Production Economics, Elsevier, vol. 206(C), pages 33-45.
    15. Wu, Jiang & Chang, Chun-Tao & Teng, Jinn-Tsair & Lai, Kuei-Kuei, 2017. "Optimal order quantity and selling price over a product life cycle with deterioration rate linked to expiration date," International Journal of Production Economics, Elsevier, vol. 193(C), pages 343-351.
    16. Civelek, Ismail & Karaesmen, Itir & Scheller-Wolf, Alan, 2015. "Blood platelet inventory management with protection levels," European Journal of Operational Research, Elsevier, vol. 243(3), pages 826-838.
    17. Sudip Adak & G. S. Mahapatra, 2022. "Effect of reliability on multi-item inventory system with shortages and partial backlog incorporating time dependent demand and deterioration," Annals of Operations Research, Springer, vol. 315(2), pages 1551-1571, August.
    18. Wang, Wan-Chih & Teng, Jinn-Tsair & Lou, Kuo-Ren, 2014. "Seller’s optimal credit period and cycle time in a supply chain for deteriorating items with maximum lifetime," European Journal of Operational Research, Elsevier, vol. 232(2), pages 315-321.
    19. Majumder, P. & Bera, U.K. & Maiti, M., 2016. "An EPQ model for two-warehouse in unremitting release pattern with two-level trade credit period concerning both supplier and retailer," Applied Mathematics and Computation, Elsevier, vol. 274(C), pages 430-458.
    20. Taleizadeh, Ata Allah & Noori-daryan, Mahsa & Cárdenas-Barrón, Leopoldo Eduardo, 2015. "Joint optimization of price, replenishment frequency, replenishment cycle and production rate in vendor managed inventory system with deteriorating items," International Journal of Production Economics, Elsevier, vol. 159(C), pages 285-295.

    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:ids:ijisma:v:9:y:2014:i:1/2:p:110-135. 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: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=81 .

    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.