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Optimal production, replenishment, delivery, routing and inventory management policies for products with perishable inventory

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  • Qiu, Yuzhuo
  • Qiao, Jun
  • Pardalos, Panos M.

Abstract

This paper presents a generalized production-inventory-routing model with perishable inventory. We analyze the optimal integrated decisions of when and how much to deliver and sell products with varying manufacturing periods. We discuss main inventory management policies to demonstrate the applicability of the model in real-world applications for production routing problems (PRPs) with perishable inventory. Furthermore, an exact branch-and-cut algorithm is developed and discussed. We introduce new families of logical, strengthened lot-sizing and lifted Miller–Tucker–Zemlin subtour elimination constraints for the PRP with perishable inventory. Finally, we test the performance of the algorithm. We also implement and compare 8 suboptimal delivery and selling priority policies with an optimized policy to develop managerial implications.

Suggested Citation

  • Qiu, Yuzhuo & Qiao, Jun & Pardalos, Panos M., 2019. "Optimal production, replenishment, delivery, routing and inventory management policies for products with perishable inventory," Omega, Elsevier, vol. 82(C), pages 193-204.
    • Handle: RePEc:eee:jomega:v:82:y:2019:i:c:p:193-204
    DOI: 10.1016/j.omega.2018.01.006
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    8. Alvarez, Aldair & Cordeau, Jean-François & Jans, Raf & Munari, Pedro & Morabito, Reinaldo, 2020. "Formulations, branch-and-cut and a hybrid heuristic algorithm for an inventory routing problem with perishable products," European Journal of Operational Research, Elsevier, vol. 283(2), pages 511-529.
    9. Ganguly, Subhamoy & Robb, David J., 2022. "An analytical model to characterize consumption and wastage of fresh fruit and vegetables in households," European Journal of Operational Research, Elsevier, vol. 300(1), pages 151-163.
    10. Bertazzi, Luca & Moezi, Sarem Deilami & Maggioni, Francesca, 2021. "The value of integration of full container load, less than container load and air freight shipments in vendor–managed inventory systems," International Journal of Production Economics, Elsevier, vol. 241(C).
    11. Manousakis, Eleftherios G. & Kasapidis, Grigoris A. & Kiranoudis, Chris T. & Zachariadis, Emmanouil E., 2022. "An infeasible space exploring matheuristic for the Production Routing Problem," European Journal of Operational Research, Elsevier, vol. 298(2), pages 478-495.
    12. Mingyuan Wei & Hao Guan & Yunhan Liu & Benhe Gao & Canrong Zhang, 2020. "Production, Replenishment and Inventory Policies for Perishable Products in a Two-Echelon Distribution Network," Sustainability, MDPI, vol. 12(11), pages 1-26, June.
    13. Li, Yantong & Chu, Feng & Côté, Jean-François & Coelho, Leandro C. & Chu, Chengbin, 2020. "The multi-plant perishable food production routing with packaging consideration," International Journal of Production Economics, Elsevier, vol. 221(C).
    14. Alvarez, Aldair & Miranda, Pedro & Rohmer, S.U.K., 2022. "Production routing for perishable products," Omega, Elsevier, vol. 111(C).
    15. Dai, B. & Chen, H.X. & Li, Y.A. & Zhang, Y.D. & Wang, X.Q. & Deng, Y.M., 2021. "Inventory replenishment planning of a distribution system with storage capacity constraints and multi-channel order fulfilment," Omega, Elsevier, vol. 102(C).
    16. Maihami, Reza & Govindan, Kannan & Fattahi, Mohammad, 2019. "The inventory and pricing decisions in a three-echelon supply chain of deteriorating items under probabilistic environment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 131(C), pages 118-138.
    17. Jing, Fuying & Chao, Xiangrui, 2021. "A dynamic lot size model with perishable inventory and stockout," Omega, Elsevier, vol. 103(C).

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