IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v255y2016i2p388-396.html
   My bibliography  Save this article

An EOQ model for perishable products with fixed shelf life under stochastic demand conditions

Author

Listed:
  • Muriana, Cinzia

Abstract

The paper presents a mathematical stochastic model for perishable open-dating foods including shortage and outdating costs. The demand fluctuations have been taken into account modeling them through a normal distribution, and their impact on the storage time has been studied considering the stochastic nature of such a parameter in turn. The quantification of perished products has been also addressed, determining the probability for a product of remaining in stock beyond the end of its Shelf Life. On the basis of such premises, the optimal set of parameters that minimize the total unit cost has been determined. A numerical application and a sensitivity analysis show the practical applicability of the proposed model in the context of warehouse management, underlining managerial insights.

Suggested Citation

  • Muriana, Cinzia, 2016. "An EOQ model for perishable products with fixed shelf life under stochastic demand conditions," European Journal of Operational Research, Elsevier, vol. 255(2), pages 388-396.
    • Handle: RePEc:eee:ejores:v:255:y:2016:i:2:p:388-396
    DOI: 10.1016/j.ejor.2016.04.036
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221716302739
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2016.04.036?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. Chiu, Huan Neng, 1995. "An approximation to the continuous review inventory model with perishable items and lead times," European Journal of Operational Research, Elsevier, vol. 87(1), pages 93-108, November.
    2. Sudhansu Khanra & Shib Sankar Sana & Kripasindhu Chaudhuri, 2010. "An EOQ model for perishable item with stock and price dependent demand rate," International Journal of Mathematics in Operational Research, Inderscience Enterprises Ltd, vol. 2(3), pages 320-335.
    3. Johansen, Soren Glud & Hill, Roger M., 2000. "The (r,Q) control of a periodic-review inventory system with continuous demand and lost sales," International Journal of Production Economics, Elsevier, vol. 68(3), pages 279-286, December.
    4. Avinadav, Tal & Herbon, Avi & Spiegel, Uriel, 2013. "Optimal inventory policy for a perishable item with demand function sensitive to price and time," International Journal of Production Economics, Elsevier, vol. 144(2), pages 497-506.
    5. 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.
    6. Steven Nahmias, 2011. "Perishable Inventory Systems," International Series in Operations Research and Management Science, Springer, edition 1, number 978-1-4419-7999-5, December.
    7. Tal Avinadav & Teijo Arponen, 2009. "An Eoq Model For Items With A Fixed Shelf-Life And A Declining Demand Rate Based On Time-To-Expiry Technical Note," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 26(06), pages 759-767.
    8. Hayya, Jack C. & Harrison, Terry P. & Chatfield, Dean C., 2009. "A solution for the intractable inventory model when both demand and lead time are stochastic," International Journal of Production Economics, Elsevier, vol. 122(2), pages 595-605, December.
    9. Brander, Par & Forsberg, Rolf, 2006. "Determination of safety stocks for cyclic schedules with stochastic demands," International Journal of Production Economics, Elsevier, vol. 104(2), pages 271-295, December.
    10. K.A. Halim & B.C. Giri & K.S. Chaudhuri, 2008. "Fuzzy Economic Order Quantity model for perishable items with stochastic demand, partial backlogging and fuzzy deterioration rate," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 3(1/2), pages 77-96.
    11. Ruibin Bai & Graham Kendall, 2008. "A Model for Fresh Produce Shelf-Space Allocation and Inventory Management with Freshness-Condition-Dependent Demand," INFORMS Journal on Computing, INFORMS, vol. 20(1), pages 78-85, February.
    12. 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.
    13. Piramuthu, Selwyn & Zhou, Wei, 2013. "RFID and perishable inventory management with shelf-space and freshness dependent demand," International Journal of Production Economics, Elsevier, vol. 144(2), pages 635-640.
    14. 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.
    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. Xiao, Shuang & Sethi, Suresh P. & Liu, Mengqi & Ma, Shihua, 2017. "Coordinating contracts for a financially constrained supply chain," Omega, Elsevier, vol. 72(C), pages 71-86.
    2. Mukunda Choudhury & Sujit Kumar De & Gour Chandra Mahata, 2023. "A pollution-sensitive multistage production-inventory model for deteriorating items considering expiration date under Stackelberg game approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(10), pages 11847-11884, October.
    3. Chu-Lun Hsieh & Wen-Hsien Tsai & Yao-Chung Chang, 2020. "Green Activity-Based Costing Production Decision Model for Recycled Paper," Energies, MDPI, vol. 13(10), pages 1-23, May.
    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. Han-Wen Tuan & Kuo-Chen Hung & Gino K. Yang, 2021. "Inventory Model with Fixed Shelf Life under Generalized Non-Increasing Demand," Mathematics, MDPI, vol. 9(21), pages 1-15, October.
    6. 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.
    7. Yang, Ya & Chi, Huihui & Tang, Ou & Zhou, Wei & Fan, Tijun, 2019. "Cross perishable effect on optimal inventory preservation control," European Journal of Operational Research, Elsevier, vol. 276(3), pages 998-1012.
    8. Jian Li & Lu Liu & Hao Hu & Qiuhong Zhao & Libin Guo, 2018. "An Inventory Model for Deteriorating Drugs with Stochastic Lead Time," IJERPH, MDPI, vol. 15(12), pages 1-20, December.
    9. Nabajyoti Bhattacharjee & Nabendu Sen & Sanjukta Malakar, 2022. "A sustainable retailer’s inventory model to study the partial replacement for deteriorating items with variable shelf-life," OPSEARCH, Springer;Operational Research Society of India, vol. 59(4), pages 1502-1521, December.
    10. Ioannis Mallidis & Dimitrios Vlachos & Volha Yakavenka & Zafeiriou Eleni, 2020. "Development of a single period inventory planning model for perishable product redistribution," Annals of Operations Research, Springer, vol. 294(1), pages 697-713, November.
    11. Gaukler, Gary & Ketzenberg, Michael & Salin, Victoria, 2017. "Establishing dynamic expiration dates for perishables: An application of rfid and sensor technology," International Journal of Production Economics, Elsevier, vol. 193(C), pages 617-632.
    12. Feng, Lin & Chan, Ya-Lan & Cárdenas-Barrón, Leopoldo Eduardo, 2017. "Pricing and lot-sizing polices for perishable goods when the demand depends on selling price, displayed stocks, and expiration date," International Journal of Production Economics, Elsevier, vol. 185(C), pages 11-20.

    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. Ioannis Mallidis & Dimitrios Vlachos & Volha Yakavenka & Zafeiriou Eleni, 2020. "Development of a single period inventory planning model for perishable product redistribution," Annals of Operations Research, Springer, vol. 294(1), pages 697-713, November.
    2. Dobson, Gregory & Pinker, Edieal J. & Yildiz, Ozlem, 2017. "An EOQ model for perishable goods with age-dependent demand rate," European Journal of Operational Research, Elsevier, vol. 257(1), pages 84-88.
    3. Tal Avinadav & Tatyana Chernonog & Yael Lahav & Uriel Spiegel, 2017. "Dynamic pricing and promotion expenditures in an EOQ model of perishable products," Annals of Operations Research, Springer, vol. 248(1), pages 75-91, January.
    4. Avinadav, Tal, 2020. "The effect of decision rights allocation on a supply chain of perishable products under a revenue-sharing contract," International Journal of Production Economics, Elsevier, vol. 225(C).
    5. Ehsan Ahmadi & Dale T. Masel & Seth Hostetler & Reza Maihami & Iman Ghalehkhondabi, 2020. "A centralized stochastic inventory control model for perishable products considering age-dependent purchase price and lead time," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 28(1), pages 231-269, April.
    6. 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.
    7. 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.
    8. V. Radhamani & B. Sivakumar & G. Arivarignan, 2022. "A Comparative Study on Replenishment Policies for Perishable Inventory System with Service Facility and Multiple Server Vacation," OPSEARCH, Springer;Operational Research Society of India, vol. 59(1), pages 229-265, March.
    9. Castellano, Davide & Glock, Christoph H., 2024. "Economic production quantity for a decaying item with stochastic demand and positive lead time," International Journal of Production Economics, Elsevier, vol. 267(C).
    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. 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.
    12. 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.
    13. Li, Guiping & He, Xiuli & Zhou, Jing & Wu, Hao, 2019. "Pricing, replenishment and preservation technology investment decisions for non-instantaneous deteriorating items," Omega, Elsevier, vol. 84(C), pages 114-126.
    14. 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.
    15. Avinadav, Tal & Herbon, Avi & Spiegel, Uriel, 2014. "Optimal ordering and pricing policy for demand functions that are separable into price and inventory age," International Journal of Production Economics, Elsevier, vol. 155(C), pages 406-417.
    16. N. Saranya & A. Shophia Lawrence, 2019. "A stochastic inventory system with replacement of perishable items," OPSEARCH, Springer;Operational Research Society of India, vol. 56(2), pages 563-582, June.
    17. Lopez Alvarez, Jose A. & Buijs, Paul & Kilic, Onur A. & Vis, Iris F.A., 2020. "An inventory control policy for liquefied natural gas as a transportation fuel," Omega, Elsevier, vol. 90(C).
    18. Chernonog, Tatyana, 2020. "Inventory and marketing policy in a supply chain of a perishable product," International Journal of Production Economics, Elsevier, vol. 219(C), pages 259-274.
    19. Chernonog, Tatyana & Avinadav, Tal, 2019. "Pricing and advertising in a supply chain of perishable products under asymmetric information," International Journal of Production Economics, Elsevier, vol. 209(C), pages 249-264.
    20. Kouki, Chaaben & Sahin, Evren & Jemaï, Zied & Dallery, Yves, 2013. "Assessing the impact of perishability and the use of time temperature technologies on inventory management," International Journal of Production Economics, Elsevier, vol. 143(1), pages 72-85.

    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:255:y:2016:i:2:p:388-396. 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.