IDEAS home Printed from https://ideas.repec.org/a/spr/opmare/v16y2023i1d10.1007_s12063-022-00266-8.html
   My bibliography  Save this article

Quality and selling price dependent sustainable perishable inventory policy: Lessons from Covid-19 pandemic

Author

Listed:
  • Vikash Murmu

    (National Institute of Technology)

  • Dinesh Kumar

    (National Institute of Technology)

  • Ashok Kumar Jha

    (National Institute of Technology)

Abstract

This paper addresses the impact of the Covid-19 lockdown on the warehousing of perishable items facing demand-side shocks, mainly those with selling price and product quality dependent demand, for example, fresh fruits, meats, vegetables, packed foods, etc. Along with demand-side issues, such an inventory system consumes a significant amount of energy in terms of freshness, increasing carbon tax and dwindling the firm's total profit. We formulate two-warehouse inventory models of perishables items using the first-in-first-out (FIFO) dispatching policy under two different Covid-19 lockdown scenarios. The two-warehouse system primarily consists of an owned warehouse (OW) and a rented warehouse (RW). Two different lockdown scenarios are considered as; (i) the lockdown during the consumption of goods in OW and (ii) the lockdown during the consumption of goods in RW. The demand rate is assumed to decline and surge by a finite volume as lockdown is forced and relaxed. The proposed models help in assessing the impact of lockdown on (i) product quality, (ii) product cost, (iii) inventory level, (iv) freshness keeping efforts, (v) investment in green technologies, and (vi) carbon cap and trade policy. We determine the above six parameters to maximize the firm's total profit. The key findings of this model suggest that yield is primarily affected due to carbon cap and trade policy, lockdown period, item price, backlogging, and variation in the holding costs in OW and RW. These models may assist the small, medium, and large firms involved in perishable or cold supply chains to assess the effect of Covid-19 like disruption and take corrective measures to maximize their profit.

Suggested Citation

  • Vikash Murmu & Dinesh Kumar & Ashok Kumar Jha, 2023. "Quality and selling price dependent sustainable perishable inventory policy: Lessons from Covid-19 pandemic," Operations Management Research, Springer, vol. 16(1), pages 408-432, March.
    • Handle: RePEc:spr:opmare:v:16:y:2023:i:1:d:10.1007_s12063-022-00266-8
    DOI: 10.1007/s12063-022-00266-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12063-022-00266-8
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12063-022-00266-8?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. Dabo Guan & Daoping Wang & Stephane Hallegatte & Steven J. Davis & Jingwen Huo & Shuping Li & Yangchun Bai & Tianyang Lei & Qianyu Xue & D’Maris Coffman & Danyang Cheng & Peipei Chen & Xi Liang & Bing, 2020. "Global supply-chain effects of COVID-19 control measures," Nature Human Behaviour, Nature, vol. 4(6), pages 577-587, June.
    2. Armantier, Olivier & Koşar, Gizem & Pomerantz, Rachel & Skandalis, Daphné & Smith, Kyle & Topa, Giorgio & van der Klaauw, Wilbert, 2021. "How economic crises affect inflation beliefs: Evidence from the Covid-19 pandemic," Journal of Economic Behavior & Organization, Elsevier, vol. 189(C), pages 443-469.
    3. Pedro Brinca & Joao B. Duarte & Miguel Faria-e-Castro, 2020. "Is the COVID-19 Pandemic a Supply or a Demand Shock?," Economic Synopses, Federal Reserve Bank of St. Louis, issue 31, May.
    4. Eger, Ludvík & Komárková, Lenka & Egerová, Dana & MiÄ Ã­k, Michal, 2021. "The effect of COVID-19 on consumer shopping behaviour: Generational cohort perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    5. Robin Naidoo & Brendan Fisher, 2020. "Reset Sustainable Development Goals for a pandemic world," Nature, Nature, vol. 583(7815), pages 198-201, July.
    6. T. S. Amjath-Babu & Timothy J. Krupnik & Shakuntala H. Thilsted & Andrew J. McDonald, 2020. "Key indicators for monitoring food system disruptions caused by the COVID-19 pandemic: Insights from Bangladesh towards effective response," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(4), pages 761-768, August.
    7. Alok Baveja & Ajai Kapoor & Benjamin Melamed, 2020. "Stopping Covid-19: A pandemic-management service value chain approach," Annals of Operations Research, Springer, vol. 289(2), pages 173-184, June.
    8. Chiaramonti, David & Maniatis, Kyriakos, 2020. "Security of supply, strategic storage and Covid19: Which lessons learnt for renewable and recycled carbon fuels, and their future role in decarbonizing transport?," Applied Energy, Elsevier, vol. 271(C).
    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. Chowdhury, Priyabrata & Paul, Sanjoy Kumar & Kaisar, Shahriar & Moktadir, Md. Abdul, 2021. "COVID-19 pandemic related supply chain studies: A systematic review," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 148(C).
    2. Gheorghe Cristian Popescu & Monica Popescu, 2022. "COVID-19 pandemic and agriculture in Romania: effects on agricultural systems, compliance with restrictions and relations with authorities," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(2), pages 557-567, April.
    3. Paul, Ananna & Shukla, Nagesh & Trianni, Andrea, 2023. "Modelling supply chain sustainability challenges in the food processing sector amid the COVID-19 outbreak," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    4. Blanco, Esther & Baier, Alexandra & Holzmeister, Felix & Jaber-Lopez, Tarek & Struwe, Natalie, 2022. "Substitution of social sustainability concerns under the Covid-19 pandemic," Ecological Economics, Elsevier, vol. 192(C).
    5. Paul, Sanjoy Kumar & Chowdhury, Priyabrata & Moktadir, Md. Abdul & Lau, Kwok Hung, 2021. "Supply chain recovery challenges in the wake of COVID-19 pandemic," Journal of Business Research, Elsevier, vol. 136(C), pages 316-329.
    6. Heffron, Raphael J. & Körner, Marc-Fabian & Schöpf, Michael & Wagner, Jonathan & Weibelzahl, Martin, 2021. "The role of flexibility in the light of the COVID-19 pandemic and beyond: Contributing to a sustainable and resilient energy future in Europe," Renewable and Sustainable Energy Reviews, Elsevier, vol. 140(C).
    7. Cariappa, AG Adeeth & Acharya, Kamlesh Kumar & Adhav, Chaitanya Ashok & R, Sendhil & Ramasundaram, P. & Kumar, Anuj & Singh, Satyavir & Singh, Gyanendra Pratap, 2022. "COVID-19 induced lockdown effect on wheat supply chain and prices in India – Insights from state interventions led resilience," Socio-Economic Planning Sciences, Elsevier, vol. 84(C).
    8. Ardekani, Zahra Fozouni & Sobhani, Seyed Mohammad Javad & Barbosa, Marcelo Werneck & de Sousa, Paulo Renato, 2023. "Transition to a sustainable food supply chain during disruptions: A study on the Brazilian food companies in the Covid-19 era," International Journal of Production Economics, Elsevier, vol. 257(C).
    9. Jiang, Peng & Fan, Yee Van & Klemeš, Jiří Jaromír, 2021. "Impacts of COVID-19 on energy demand and consumption: Challenges, lessons and emerging opportunities," Applied Energy, Elsevier, vol. 285(C).
    10. Shaher H. Zyoud, 2023. "Analyzing and visualizing global research trends on COVID-19 linked to sustainable development goals," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(6), pages 5459-5493, June.
    11. Marco Bottone & Cristina Conflitti & Marianna Riggi & Alex Tagliabracci, 2021. "Firms' inflation expectations and pricing strategies during Covid-19," Questioni di Economia e Finanza (Occasional Papers) 619, Bank of Italy, Economic Research and International Relations Area.
    12. Choi, Gahyun & Park, Kwangyeol & Yi, Eojin & Ahn, Kwangwon, 2023. "Price fairness: Clean energy stocks and the overall market," Chaos, Solitons & Fractals, Elsevier, vol. 168(C).
    13. Yuen, Kum Fai & Chua, Jie Ying & Li, Xue & Wang, Xueqin, 2023. "The determinants of users’ intention to adopt telehealth: Health belief, perceived value and self-determination perspectives," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    14. Żuk, Piotr & Żuk, Paweł & Pluciński, Przemysław, 2021. "Coal basin in Upper Silesia and energy transition in Poland in the context of pandemic: The socio-political diversity of preferences in energy and environmental policy," Resources Policy, Elsevier, vol. 71(C).
    15. Benjamin S. Thompson, 2023. "Impact investing in biodiversity conservation with bonds: An analysis of financial and environmental risk," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 353-368, January.
    16. Chopdar, Prasanta Kr & Paul, Justin & Prodanova, Jana, 2022. "Mobile shoppers’ response to Covid-19 phobia, pessimism and smartphone addiction: Does social influence matter?," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    17. M. A. Hannan & M. S. Abd Rahman & Ali Q. Al-Shetwi & R. A. Begum & Pin Jern Ker & M. Mansor & M. S. Mia & M. J. Hossain & Z. Y. Dong & T. M. I. Mahlia, 2022. "Impact Assessment of COVID-19 Severity on Environment, Economy and Society towards Affecting Sustainable Development Goals," Sustainability, MDPI, vol. 14(23), pages 1-23, November.
    18. Dewan Abdullah Al Rafi & Sanzida Taurin & Kentaka Aruga & Md. Monirul Islam & Arifa Jannat, 2022. "Revealing the pathway of reluctancy toward agricultural credit repayment: a case study on fish farmers in Bangladesh," SN Business & Economics, Springer, vol. 2(6), pages 1-24, June.
    19. Wang, Siqi & Cheah, Jun-Hwa & Lim, Xin-Jean & Leong, Yee Choy & Choo, Wei Chong, 2022. "Thanks COVID-19, I'll reconsider my purchase: Can fear appeal reduce online shopping cart abandonment?," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    20. An, Zidong & Binder, Carola & Sheng, Xuguang Simon, 2023. "Gas price expectations of Chinese households," Energy Economics, Elsevier, vol. 120(C).

    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:spr:opmare:v:16:y:2023:i:1:d:10.1007_s12063-022-00266-8. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.