IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v247y2022ics092552732200010x.html
   My bibliography  Save this article

Dynamic optimal control and simulation for unreliable manufacturing systems under perishable product and shelf life variability

Author

Listed:
  • Gharbi, Ali
  • Kenné, Jean-Pierre
  • Kaddachi, Rawia

Abstract

This paper develops an optimal control policy for unreliable manufacturing systems evolving in a stochastic and dynamic environment and producing perishable products with limited and random shelf lives. The developed optimal control policy aims to minimize the total cost, composed of backlog, inventory holding and disposal costs. To do this, we develop a stochastic dynamic programming model and the obtained optimality conditions are solved using a numerical approach to determine the parametrized structure of the resulting optimal control policy. A simulation-based optimization approach is used to optimize the parameters of the developed control policy. This policy is subsequently analyzed using multiple sensitivity analyses and compared to other policies from the literature. We also study shelf life variability and its influence on the system performance. Numerical examples show that in the case of a random shelf life, the developed control policy presents a lower total cost in comparison with other policies from the literature.

Suggested Citation

  • Gharbi, Ali & Kenné, Jean-Pierre & Kaddachi, Rawia, 2022. "Dynamic optimal control and simulation for unreliable manufacturing systems under perishable product and shelf life variability," International Journal of Production Economics, Elsevier, vol. 247(C).
    • Handle: RePEc:eee:proeco:v:247:y:2022:i:c:s092552732200010x
    DOI: 10.1016/j.ijpe.2022.108417
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S092552732200010X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2022.108417?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. Y. Barron, 2019. "A state-dependent perishability (s, S) inventory model with random batch demands," Annals of Operations Research, Springer, vol. 280(1), pages 65-98, September.
    2. Berthaut, F. & Gharbi, A. & Kenné, J.-P. & Boulet, J.-F., 2010. "Improved joint preventive maintenance and hedging point policy," International Journal of Production Economics, Elsevier, vol. 127(1), pages 60-72, September.
    3. 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.
    4. Hiva Malekpour & Seyed Mojtaba Sajadi & Hashem Vahdani, 2016. "Using discrete-event simulation and the Taguchi method for optimising the production rate of network failure-prone manufacturing systems with perishable goods," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 23(4), pages 387-406.
    5. Lian, Zhaotong & Liu, Xiaoming & Zhao, Ning, 2009. "A perishable inventory model with Markovian renewal demands," International Journal of Production Economics, Elsevier, vol. 121(1), pages 176-182, September.
    6. Polotski, V. & Kenne, J.-P. & Gharbi, A., 2019. "Joint production and maintenance optimization in flexible hybrid Manufacturing–Remanufacturing systems under age-dependent deterioration," International Journal of Production Economics, Elsevier, vol. 216(C), pages 239-254.
    7. Yi Yang & Youhua (Frank) Chen & Yun Zhou, 2014. "Coordinating Inventory Control and Pricing Strategies Under Batch Ordering," Operations Research, INFORMS, vol. 62(1), pages 25-37, February.
    8. Kouki, Chaaben & Babai, M. Zied & Jemai, Zied & Minner, Stefan, 2016. "A coordinated multi-item inventory system for perishables with random lifetime," International Journal of Production Economics, Elsevier, vol. 181(PA), pages 226-237.
    9. Wee, Hui Ming & Widyadana, Gede Agus, 2013. "A production model for deteriorating items with stochastic preventive maintenance time and rework process with FIFO rule," Omega, Elsevier, vol. 41(6), pages 941-954.
    10. Assid, M. & Gharbi, A. & Hajji, A., 2020. "Production control of failure-prone manufacturing-remanufacturing systems using mixed dedicated and shared facilities," International Journal of Production Economics, Elsevier, vol. 224(C).
    11. Gede Agus Widyadana & Hui Ming Wee, 2012. "An economic production quantity model for deteriorating items with preventive maintenance policy and random machine breakdown," International Journal of Systems Science, Taylor & Francis Journals, vol. 43(10), pages 1870-1882.
    12. Itir Z. Karaesmen & Alan Scheller–Wolf & Borga Deniz, 2011. "Managing Perishable and Aging Inventories: Review and Future Research Directions," International Series in Operations Research & Management Science, in: Karl G. Kempf & Pınar Keskinocak & Reha Uzsoy (ed.), Planning Production and Inventories in the Extended Enterprise, chapter 0, pages 393-436, Springer.
    13. 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.
    14. Elia Balugani & Francesco Lolli & Rita Gamberini & Bianca Rimini & M. Z. Babai, 2019. "A periodic inventory system of intermittent demand items with fixed lifetimes," International Journal of Production Research, Taylor & Francis Journals, vol. 57(22), pages 6993-7005, November.
    15. Lavoie, P. & Gharbi, A. & Kenné, J.-P., 2010. "A comparative study of pull control mechanisms for unreliable homogenous transfer lines," International Journal of Production Economics, Elsevier, vol. 124(1), pages 241-251, March.
    16. Xin Chen & Zhan Pang & Limeng Pan, 2014. "Coordinating Inventory Control and Pricing Strategies for Perishable Products," Operations Research, INFORMS, vol. 62(2), pages 284-300, April.
    17. Prem Vrat & Rachita Gupta & Aman Bhatnagar & Devendra Kumar Pathak & Vijayta Fulzele, 2018. "Literature review analytics (LRA) on sustainable cold-chain for perishable food products: research trends and future directions," OPSEARCH, Springer;Operational Research Society of India, vol. 55(3), pages 601-627, November.
    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. Hota, Soumya Kanti & Sarkar, Biswajit & Ghosh, Santanu Kumar & Cheikhrouhou, Naoufel & Treviño-Garza, Gerardo, 2024. "What should be the best retail strategy to deal with an unequal shipment from an unreliable manufacturer?," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    2. Maheshwari, Pratik & Kamble, Sachin & Belhadi, Amine & Venkatesh, Mani & Abedin, Mohammad Zoynul, 2023. "Digital twin-driven real-time planning, monitoring, and controlling in food supply chains," Technological Forecasting and Social Change, Elsevier, vol. 195(C).
    3. Behnamfar, Reza & Sajadi, Seyed Mojtaba & Tootoonchy, Mahshid, 2022. "Developing environmental hedging point policy with variable demand: A machine learning approach," International Journal of Production Economics, Elsevier, vol. 254(C).
    4. Panagiotis D. Paraschos & Georgios K. Koulinas & Dimitrios E. Koulouriotis, 2024. "A reinforcement learning/ad-hoc planning and scheduling mechanism for flexible and sustainable manufacturing systems," Flexible Services and Manufacturing Journal, Springer, vol. 36(3), pages 714-736, September.

    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. 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. Sasanuma, Katsunobu & Delasay, Mohammad & Pitocco, Christine & Scheller-Wolf, Alan & Sexton, Thomas, 2022. "A marginal analysis framework to incorporate the externality effect of ordering perishables," Operations Research Perspectives, Elsevier, vol. 9(C).
    3. Hanukov, Gabi & Avinadav, Tal & Chernonog, Tatyana & Yechiali, Uri, 2020. "A service system with perishable products where customers are either fastidious or strategic," International Journal of Production Economics, Elsevier, vol. 228(C).
    4. Ding, Jingying & Peng, Zhenkang, 2024. "Heuristics for perishable inventory systems under mixture issuance policies," Omega, Elsevier, vol. 126(C).
    5. 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).
    6. Miao, Jie & Liu, Aijun & Wang, Ruiyao & Lu, Hui, 2022. "The influence of information asymmetry on the strategic inventory of deteriorating commodity," Omega, Elsevier, vol. 107(C).
    7. Hailun Zhang & Jiheng Zhang & Rachel Q. Zhang, 2020. "Simple Policies with Provable Bounds for Managing Perishable Inventory," Production and Operations Management, Production and Operations Management Society, vol. 29(11), pages 2637-2650, November.
    8. 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.
    9. Hossein Abouee‐Mehrizi & Mahdi Mirjalili & Vahid Sarhangian, 2022. "Data‐driven platelet inventory management under uncertainty in the remaining shelf life of units," Production and Operations Management, Production and Operations Management Society, vol. 31(10), pages 3914-3932, October.
    10. Özbilge, Armağan & Hassini, Elkafi & Parlar, Mahmut, 2024. "Optimal pricing and donation policy for fresh goods," European Journal of Operational Research, Elsevier, vol. 312(1), pages 198-210.
    11. Zhao, Yan & Li, Yanhui & Yao, Qi & Guan, Xu, 2023. "Dual-channel retailing strategy vs. omni-channel buy-online-and-pick-up-in-store behaviors with reference freshness effect," International Journal of Production Economics, Elsevier, vol. 263(C).
    12. Shouchang Chen & Yanzhi Li & Yi Yang & Weihua Zhou, 2021. "Managing Perishable Inventory Systems with Age‐differentiated Demand," Production and Operations Management, Production and Operations Management Society, vol. 30(10), pages 3784-3799, October.
    13. Bhatia, Nishika & Gülpınar, Nalan & Aydın, Nurşen, 2020. "Dynamic production-pricing strategies for multi-generation products under uncertainty," International Journal of Production Economics, Elsevier, vol. 230(C).
    14. Yuqian Xu & Lingjiong Zhu & Michael Pinedo, 2020. "Operational Risk Management: A Stochastic Control Framework with Preventive and Corrective Controls," Operations Research, INFORMS, vol. 68(6), pages 1804-1825, November.
    15. Nan Yang & Renyu Zhang, 2022. "Dynamic pricing and inventory management in the presence of online reviews," Production and Operations Management, Production and Operations Management Society, vol. 31(8), pages 3180-3197, August.
    16. Gurkan, M. Edib & Tunc, Huseyin & Tarim, S. Armagan, 2022. "The joint stochastic lot sizing and pricing problem," Omega, Elsevier, vol. 108(C).
    17. Boxiao Chen & Xiuli Chao & Cong Shi, 2021. "Nonparametric Learning Algorithms for Joint Pricing and Inventory Control with Lost Sales and Censored Demand," Mathematics of Operations Research, INFORMS, vol. 46(2), pages 726-756, May.
    18. Zhen Xu & Jiheng Zhang & Rachel Q. Zhang, 2019. "Instantaneous Control of Brownian Motion with a Positive Lead Time," Mathematics of Operations Research, INFORMS, vol. 44(3), pages 943-965, August.
    19. Duong, Quang Huy & Zhou, Li & Meng, Meng & Nguyen, Truong Van & Ieromonachou, Petros & Nguyen, Duy Tiep, 2022. "Understanding product returns: A systematic literature review using machine learning and bibliometric analysis," International Journal of Production Economics, Elsevier, vol. 243(C).
    20. Xiuyan Ma, 2019. "Pricing to the Scenario: Price-Setting Newsvendor Models for Innovative Products," Mathematics, MDPI, vol. 7(9), pages 1-15, September.

    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:proeco:v:247:y:2022:i:c:s092552732200010x. 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/ijpe .

    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.