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RFID and perishable inventory management with shelf-space and freshness dependent demand

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  • Piramuthu, Selwyn
  • Zhou, Wei

Abstract

Although there is an extensive set of literature on inventory management for perishable items, a majority of these operate at a higher level where all items are assumed to have a fixed shelf-life. However, depending on how they are handled in transit as well as during storage, the remaining shelf-life of perishable items can vary. We consider perishable inventory management with demand that is directly dependent on the amount of shelf-space allocated to the item of interest as well as its instantaneous quality. We assume the existence of detailed information at the item-level generated through auto-ID technology such as RFID with necessary sensors. Specifically, we extend the model in Bai and Kendall (2008) to incorporate item-level quality information and use Genetic Algorithms to solve our model. Our results show that the incorporation of item quality increases the resulting overall profit to the retailer.

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  • 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.
    • Handle: RePEc:eee:proeco:v:144:y:2013:i:2:p:635-640
    DOI: 10.1016/j.ijpe.2013.04.035
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    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. Masoud Rabbani & Navid Salmanzadeh-Meydani & Amir Farshbaf-Geranmayeh & Vahed Fadakar-Gabalou, 2018. "Profit maximizing through 3D shelf space allocation of 2D display orientation items with variable heights of the shelves," OPSEARCH, Springer;Operational Research Society of India, vol. 55(2), pages 337-360, June.
    3. 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.
    4. 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.
    5. Rafael Tordecilla-Madera & Andrés Polo & Adrián Cañón, 2018. "Vehicles Allocation for Fruit Distribution Considering CO 2 Emissions and Decisions on Subcontracting," Sustainability, MDPI, vol. 10(7), pages 1-21, July.
    6. Mou, Shandong & Robb, David J. & DeHoratius, Nicole, 2018. "Retail store operations: Literature review and research directions," European Journal of Operational Research, Elsevier, vol. 265(2), pages 399-422.
    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. Ali Salmasnia & Ali Talesh-Kazemi & Mohammad Reza Maleki, 2022. "Joint optimization of inventory planning, maintenance policy and pricing for perishable complementary products by considering the product freshness and technology level," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(4), pages 713-746, December.
    9. Ming Luo & GuoHua Zhou & Hao Xu, 2022. "RETRACTED ARTICLE: Three-tier supply chain on temperature control for fresh agricultural products using new differential game model under two decision-making situations," Operations Management Research, Springer, vol. 15(3), pages 1028-1047, December.
    10. Chandan Mahato & Gour Chandra Mahata, 2023. "Optimal Pricing and Inventory Decisions for Perishable Products with Multivariate Demand Function Under Trade Credit," SN Operations Research Forum, Springer, vol. 4(2), pages 1-26, June.
    11. Ranveer Singh Rana & Dinesh Kumar & Kanika Prasad & K. Mathiyazhagan, 2024. "Mitigating the impact of demand disruption on perishable inventory in a two-warehouse system," Operations Management Research, Springer, vol. 17(2), pages 469-504, June.
    12. 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.
    13. Wang, Shih-Yen & Sheen, Gwo-Ji & Yeh, Yingchieh, 2015. "Pricing and shelf space decisions with non-symmetric market demand," International Journal of Production Economics, Elsevier, vol. 169(C), pages 233-239.
    14. Ali Akbar Shaikh & Leopoldo Eduardo Cárdenas-Barrón & Amalesh Kumar Manna & Armando Céspedes-Mota & Gerardo Treviño-Garza, 2021. "Two Level Trade Credit Policy Approach in Inventory Model with Expiration Rate and Stock Dependent Demand under Nonzero Inventory and Partial Backlogged Shortages," Sustainability, MDPI, vol. 13(23), pages 1-19, December.
    15. Pırıl Tekin & Rızvan Erol, 2017. "A New Dynamic Pricing Model for the Effective Sustainability of Perishable Product Life Cycle," Sustainability, MDPI, vol. 9(8), pages 1-22, July.
    16. Bianchi-Aguiar, Teresa & Hübner, Alexander & Carravilla, Maria Antónia & Oliveira, José Fernando, 2021. "Retail shelf space planning problems: A comprehensive review and classification framework," European Journal of Operational Research, Elsevier, vol. 289(1), pages 1-16.
    17. Zhao, Ju & Zhou, Yong-Wu & Wahab, M.I.M., 2016. "Joint optimization models for shelf display and inventory control considering the impact of spatial relationship on demand," European Journal of Operational Research, Elsevier, vol. 255(3), pages 797-808.
    18. Liu, Molin & Dan, Bin & Zhang, Shuguang & Ma, Songxuan, 2021. "Information sharing in an E-tailing supply chain for fresh produce with freshness-keeping effort and value-added service," European Journal of Operational Research, Elsevier, vol. 290(2), pages 572-584.
    19. 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.
    20. Grunow, Martin & Piramuthu, Selwyn, 2013. "RFID in highly perishable food supply chains – Remaining shelf life to supplant expiry date?," International Journal of Production Economics, Elsevier, vol. 146(2), pages 717-727.
    21. Dulebenets, Maxim A. & Ozguven, Eren Erman, 2017. "Vessel scheduling in liner shipping: Modeling transport of perishable assets," International Journal of Production Economics, Elsevier, vol. 184(C), pages 141-156.
    22. Luo, Kai & Bollapragada, Ramesh & Kerbache, Laoucine, 2017. "Inventory allocation models for a two-stage, two-product, capacitated supplier and retailer problem with random demand," International Journal of Production Economics, Elsevier, vol. 187(C), pages 168-181.
    23. 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.
    24. Mohit Malik & Vijay Kumar Gahlawat & Rahul S Mor & Vijay Dahiya & Mukheshwar Yadav, 2022. "Application of Optimization Techniques in the Dairy Supply Chain: A Systematic Review," Logistics, MDPI, vol. 6(4), pages 1-16, October.

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