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Environmentally sustainable inventory control for perishable products: A bi-objective reorder-level policy

Author

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  • Pilati, Francesco
  • Giacomelli, Marco
  • Brunelli, Matteo

Abstract

In order to improve sustainability and transparency in the decision making for inventory control, this paper presents a reorder-level model that considers product perishability. Conversely to most inventory control policies, the classical economic perspective is paired with an environmental one for a stochastic bi-objective optimization approach to reduce inventory logistics emissions and costs. In order to contrast stockouts, lost-sale costing and a service level constraint are integrated for a more comprehensive approach. Results show how the two objectives may be in contrast, and how Pareto-efficient solutions can help to analyze and select the proper trade-offs during decision making. Experiments indicate, for a case-study application, how the most relevant aspects affecting system performance are product shelf life and the possible need of temperature control during storage. Moreover, considering multiple sustainability perspectives in inventory management can help businesses consolidate and future-proof their operations, as well as meet environmental standards and customer demand for greener products and processes.

Suggested Citation

  • Pilati, Francesco & Giacomelli, Marco & Brunelli, Matteo, 2024. "Environmentally sustainable inventory control for perishable products: A bi-objective reorder-level policy," International Journal of Production Economics, Elsevier, vol. 274(C).
    • Handle: RePEc:eee:proeco:v:274:y:2024:i:c:s092552732400166x
    DOI: 10.1016/j.ijpe.2024.109309
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    Cited by:

    1. Marco Giacomelli & Francesco Pilati & Matteo Brunelli, 2024. "Bi-Objective Inventory Policy with Comprehensive Environmental Factors Formulation and Service Level Constraints," Sustainability, MDPI, vol. 16(17), pages 1-18, September.

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