IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v244y2015i3p881-891.html
   My bibliography  Save this article

The economic lot-sizing problem with perishable items and consumption order preference

Author

Listed:
  • Önal, Mehmet
  • Romeijn, H.Edwin
  • Sapra, Amar
  • van den Heuvel, Wilco

Abstract

We consider the economic lot-sizing problem with perishable items (ELS-PI), where each item has a deterministic expiration date. Although all items in stock are equivalent regardless of procurement or expiration date, we allow for an allocation mechanism that defines an order in which the items are allocated to the consumers. In particular, we consider the following allocation mechanisms: First Expiration, First Out (FEFO), Last Expiration, First Out (LEFO), First In, First Out (FIFO) and Last In, First Out (LIFO). We show that the ELS-PI can be solved in polynomial time under all four allocation mechanisms in case of no procurement capacities. This result still holds in case of time-invariant procurement capacities under the FIFO and LEFO allocation mechanisms, but the problem becomes NP-hard under the FEFO and LIFO allocation mechanisms.

Suggested Citation

  • Önal, Mehmet & Romeijn, H.Edwin & Sapra, Amar & van den Heuvel, Wilco, 2015. "The economic lot-sizing problem with perishable items and consumption order preference," European Journal of Operational Research, Elsevier, vol. 244(3), pages 881-891.
    • Handle: RePEc:eee:ejores:v:244:y:2015:i:3:p:881-891
    DOI: 10.1016/j.ejor.2015.02.021
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221715001228
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2015.02.021?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. Cyrus Derman & Morton Klein, 1958. "Inventory Depletion Management," Management Science, INFORMS, vol. 4(4), pages 450-456, July.
    2. Hwang, Hark & Hahn, Kyu Hun, 2000. "An optimal procurement policy for items with an inventory level-dependent demand rate and fixed lifetime," European Journal of Operational Research, Elsevier, vol. 127(3), pages 537-545, December.
    3. Hark‐Chin Hwang & Wilco van den Heuvel, 2012. "Improved algorithms for a lot‐sizing problem with inventory bounds and backlogging," Naval Research Logistics (NRL), John Wiley & Sons, vol. 59(3‐4), pages 244-253, April.
    4. 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.
    5. 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.
    6. Gabriel R. Bitran & Horacio H. Yanasse, 1982. "Computational Complexity of the Capacitated Lot Size Problem," Management Science, INFORMS, vol. 28(10), pages 1174-1186, October.
    7. Mahmut Parlar & David Perry & Wolfgang Stadje, 2011. "FIFO Versus LIFO Issuing Policies for Stochastic Perishable Inventory Systems," Methodology and Computing in Applied Probability, Springer, vol. 13(2), pages 405-417, June.
    8. Liming Liu & Zhaotong Lian, 1999. "(s, S) Continuous Review Models for Products with Fixed Lifetimes," Operations Research, INFORMS, vol. 47(1), pages 150-158, February.
    9. Brant E. Fries, 1975. "Optimal Ordering Policy for a Perishable Commodity with Fixed Lifetime," Operations Research, INFORMS, vol. 23(1), pages 46-61, February.
    10. 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.
    11. Olsson, Fredrik & Tydesjö, Patrik, 2010. "Inventory problems with perishable items: Fixed lifetimes and backlogging," European Journal of Operational Research, Elsevier, vol. 202(1), pages 131-137, April.
    12. Willard I. Zangwill, 1968. "Minimum Concave Cost Flows in Certain Networks," Management Science, INFORMS, vol. 14(7), pages 429-450, March.
    13. Michael Florian & Morton Klein, 1971. "Deterministic Production Planning with Concave Costs and Capacity Constraints," Management Science, INFORMS, vol. 18(1), pages 12-20, September.
    14. Stephen F. Love, 1973. "Bounded Production and Inventory Models with Piecewise Concave Costs," Management Science, INFORMS, vol. 20(3), pages 313-318, November.
    15. Vernon Ning Hsu, 2000. "Dynamic Economic Lot Size Model with Perishable Inventory," Management Science, INFORMS, vol. 46(8), pages 1159-1169, August.
    16. Hahn, Kyu Hun & Hwang, Hark & Shinn, Seong Whan, 2004. "A returns policy for distribution channel coordination of perishable items," European Journal of Operational Research, Elsevier, vol. 152(3), pages 770-780, February.
    17. Urban, Timothy L., 2005. "Inventory models with inventory-level-dependent demand: A comprehensive review and unifying theory," European Journal of Operational Research, Elsevier, vol. 162(3), pages 792-804, May.
    18. 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.
    19. Liu, Tieming, 2008. "Economic lot sizing problem with inventory bounds," European Journal of Operational Research, Elsevier, vol. 185(1), pages 204-215, February.
    20. M. Florian & J. K. Lenstra & A. H. G. Rinnooy Kan, 1980. "Deterministic Production Planning: Algorithms and Complexity," Management Science, INFORMS, vol. 26(7), pages 669-679, July.
    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. 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.
    2. Hu, Qiwei & Boylan, John E. & Chen, Huijing & Labib, Ashraf, 2018. "OR in spare parts management: A review," European Journal of Operational Research, Elsevier, vol. 266(2), pages 395-414.
    3. Brahimi, Nadjib & Absi, Nabil & Dauzère-Pérès, Stéphane & Nordli, Atle, 2017. "Single-item dynamic lot-sizing problems: An updated survey," European Journal of Operational Research, Elsevier, vol. 263(3), pages 838-863.
    4. Hanukov, Gabi, 2022. "Improving efficiency of service systems by performing a part of the service without the customer's presence," European Journal of Operational Research, Elsevier, vol. 302(2), pages 606-620.
    5. Wu, Kan & Yuan, Xue-Ming, 2016. "Optimal production-inventory policy for an integrated multi-stage supply chain with time-varying demandAuthor-Name: Zhao, Shi Tao," European Journal of Operational Research, Elsevier, vol. 255(2), pages 364-379.
    6. Sazvar, Z. & Mirzapour Al-e-hashem, S.M.J. & Govindan, K. & Bahli, B., 2016. "A novel mathematical model for a multi-period, multi-product optimal ordering problem considering expiry dates in a FEFO system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 93(C), pages 232-261.
    7. Zhai, Yue & Zhong, Ray Y. & Huang, George Q., 2018. "Buffer space hedging and coordination in prefabricated construction supply chain management," International Journal of Production Economics, Elsevier, vol. 200(C), pages 192-206.
    8. Jing, Fuying & Chao, Xiangrui, 2022. "Forecast horizons for a two-echelon dynamic lot-sizing problem," Omega, Elsevier, vol. 110(C).
    9. Jing, Fuying & Chao, Xiangrui, 2021. "A dynamic lot size model with perishable inventory and stockout," Omega, Elsevier, vol. 103(C).
    10. Absi, Nabil & Dauzère-Pérès, Stéphane & Kedad-Sidhoum, Safia & Penz, Bernard & Rapine, Christophe, 2016. "The single-item green lot-sizing problem with fixed carbon emissions," European Journal of Operational Research, Elsevier, vol. 248(3), pages 849-855.
    11. Konur, Dinçer, 2017. "Non-collaborative emission targets joining and quantity flow decisions in a Stackelberg setting," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 105(C), pages 60-82.
    12. Gruson, Matthieu & Cordeau, Jean-François & Jans, Raf, 2018. "The impact of service level constraints in deterministic lot sizing with backlogging," Omega, Elsevier, vol. 79(C), pages 91-103.
    13. Bakker, Hannah & Bindewald, Viktor & Dunke, Fabian & Nickel, Stefan, 2023. "Logistics for diagnostic testing: An adaptive decision-support framework," European Journal of Operational Research, Elsevier, vol. 311(3), pages 1120-1133.

    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. Chung-Lun Li & Qingying Li, 2016. "Polynomial-Time Solvability of Dynamic Lot Size Problems," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 33(03), pages 1-20, June.
    2. Brahimi, Nadjib & Absi, Nabil & Dauzère-Pérès, Stéphane & Nordli, Atle, 2017. "Single-item dynamic lot-sizing problems: An updated survey," European Journal of Operational Research, Elsevier, vol. 263(3), pages 838-863.
    3. Ayse Akbalik & Bernard Penz & Christophe Rapine, 2015. "Capacitated lot sizing problems with inventory bounds," Annals of Operations Research, Springer, vol. 229(1), pages 1-18, June.
    4. Liu, X. & Tu, Yl., 2008. "Production planning with limited inventory capacity and allowed stockout," International Journal of Production Economics, Elsevier, vol. 111(1), pages 180-191, January.
    5. Brahimi, Nadjib & Dauzere-Peres, Stephane & Najid, Najib M. & Nordli, Atle, 2006. "Single item lot sizing problems," European Journal of Operational Research, Elsevier, vol. 168(1), pages 1-16, January.
    6. Alper Atamtürk & Dorit S. Hochbaum, 2001. "Capacity Acquisition, Subcontracting, and Lot Sizing," Management Science, INFORMS, vol. 47(8), pages 1081-1100, August.
    7. Hwang, Hark-Chin & Jaruphongsa, Wikrom, 2008. "Dynamic lot-sizing model for major and minor demands," European Journal of Operational Research, Elsevier, vol. 184(2), pages 711-724, January.
    8. Guan, Yongpei & Liu, Tieming, 2010. "Stochastic lot-sizing problem with inventory-bounds and constant order-capacities," European Journal of Operational Research, Elsevier, vol. 207(3), pages 1398-1409, December.
    9. 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.
    10. Önal, Mehmet & van den Heuvel, Wilco & Dereli, Meryem Merve & Albey, Erinç, 2023. "Economic lot sizing problem with tank scheduling," European Journal of Operational Research, Elsevier, vol. 308(1), pages 166-182.
    11. H. Edwin Romeijn & Dolores Romero Morales & Wilco Van den Heuvel, 2014. "Computational complexity of finding Pareto efficient outcomes for biobjective lot‐sizing models," Naval Research Logistics (NRL), John Wiley & Sons, vol. 61(5), pages 386-402, August.
    12. Mathieu Van Vyve, 2007. "Algorithms for Single-Item Lot-Sizing Problems with Constant Batch Size," Mathematics of Operations Research, INFORMS, vol. 32(3), pages 594-613, August.
    13. Safer, Hershel M. & Orlin, James B., 1953-, 1995. "Fast approximation schemes for multi-criteria flow, knapsack, and scheduling problems," Working papers 3757-95., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    14. Stan van Hoesel & H. Edwin Romeijn & Dolores Romero Morales & Albert P. M. Wagelmans, 2005. "Integrated Lot Sizing in Serial Supply Chains with Production Capacities," Management Science, INFORMS, vol. 51(11), pages 1706-1719, November.
    15. 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.
    16. Hark‐Chin Hwang & Wilco van den Heuvel, 2012. "Improved algorithms for a lot‐sizing problem with inventory bounds and backlogging," Naval Research Logistics (NRL), John Wiley & Sons, vol. 59(3‐4), pages 244-253, April.
    17. Atamturk, Alper & Munoz, Juan Carlos, 2002. "A Study of the Lot-Sizing Polytope," University of California Transportation Center, Working Papers qt6zz2g0z4, University of California Transportation Center.
    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. Vernon Ning Hsu, 2000. "Dynamic Economic Lot Size Model with Perishable Inventory," Management Science, INFORMS, vol. 46(8), pages 1159-1169, August.
    20. Pan, Zhendong & Tang, Jiafu & Liu, Ou, 2009. "Capacitated dynamic lot sizing problems in closed-loop supply chain," European Journal of Operational Research, Elsevier, vol. 198(3), pages 810-821, November.

    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:ejores:v:244:y:2015:i:3:p:881-891. 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/locate/eor .

    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.