IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v274y2024ics092552732400166x.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S092552732400166X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2024.109309?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. Battini, Daria & Persona, Alessandro & Sgarbossa, Fabio, 2014. "A sustainable EOQ model: Theoretical formulation and applications," International Journal of Production Economics, Elsevier, vol. 149(C), pages 145-153.
    3. Haijema, René, 2013. "A new class of stock-level dependent ordering policies for perishables with a short maximum shelf life," International Journal of Production Economics, Elsevier, vol. 143(2), pages 434-439.
    4. Eric T. Anderson & Gavan J. Fitzsimons & Duncan Simester, 2006. "Measuring and Mitigating the Costs of Stockouts," Management Science, INFORMS, vol. 52(11), pages 1751-1763, November.
    5. Bijvank, Marco & Vis, Iris F.A., 2011. "Lost-sales inventory theory: A review," European Journal of Operational Research, Elsevier, vol. 215(1), pages 1-13, November.
    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. Chen, Frank Y. & Krass, Dmitry, 2001. "Inventory models with minimal service level constraints," European Journal of Operational Research, Elsevier, vol. 134(1), pages 120-140, October.
    8. Gong, Min & Lian, Zhaotong & Xiao, Hua, 2022. "Inventory control policy for perishable products under a buyback contract and Brownian demands," International Journal of Production Economics, Elsevier, vol. 251(C).
    9. Matthew J. Drake & Kathryn A. Marley, 2014. "A Century of the EOQ," International Series in Operations Research & Management Science, in: Tsan-Ming Choi (ed.), Handbook of EOQ Inventory Problems, edition 127, pages 3-22, Springer.
    10. Andrés Musalem & Marcelo Olivares & Eric T. Bradlow & Christian Terwiesch & Daniel Corsten, 2010. "Structural Estimation of the Effect of Out-of-Stocks," Management Science, INFORMS, vol. 56(7), pages 1180-1197, July.
    11. 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.
    12. Soysal, Mehmet & Bloemhof-Ruwaard, Jacqueline M. & Haijema, Rene & van der Vorst, Jack G.A.J., 2015. "Modeling an Inventory Routing Problem for perishable products with environmental considerations and demand uncertainty," International Journal of Production Economics, Elsevier, vol. 164(C), pages 118-133.
    13. Fichtinger, J. & Ries, J. M. & Grosse, E. H. & Baker, P., 2015. "Assessing the environmental impact of integrated inventory and warehouse management," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 74211, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    14. Bouchery, Yann & Ghaffari, Asma & Jemai, Zied & Dallery, Yves, 2012. "Including sustainability criteria into inventory models," European Journal of Operational Research, Elsevier, vol. 222(2), pages 229-240.
    15. Arıkan, Emel & Fichtinger, Johannes & Ries, Jörg M., 2014. "Impact of transportation lead-time variability on the economic and environmental performance of inventory systems," International Journal of Production Economics, Elsevier, vol. 157(C), pages 279-288.
    16. Arikan, E. & Fichtinger, J. & Ries, J. M., 2014. "Impact of transportation lead-time variability on the economic and environmental performance of inventory systems," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 63386, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    17. Eugenia Babiloni & Ester Guijarro, 2020. "Fill rate: from its definition to its calculation for the continuous (s, Q) inventory system with discrete demands and lost sales," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 28(1), pages 35-43, March.
    18. Absi, Nabil & Dauzère-Pérès, Stéphane & Kedad-Sidhoum, Safia & Penz, Bernard & Rapine, Christophe, 2013. "Lot sizing with carbon emission constraints," European Journal of Operational Research, Elsevier, vol. 227(1), pages 55-61.
    19. Bozorgi, Ali & Pazour, Jennifer & Nazzal, Dima, 2014. "A new inventory model for cold items that considers costs and emissions," International Journal of Production Economics, Elsevier, vol. 155(C), pages 114-125.
    20. Y Bouchery & Asma Ghaffari & Zied Jemai & Jan C Fransoo, 2016. "Sustainable transportation and order quantity: insights from multiobjective optimization," Post-Print hal-01954465, HAL.
    21. 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.
    22. Kouki, Chaaben & Jemaï, Zied & Minner, Stefan, 2015. "A lost sales (r, Q) inventory control model for perishables with fixed lifetime and lead time," International Journal of Production Economics, Elsevier, vol. 168(C), pages 143-157.
    23. Emre Berk & Ülkü Gürler, 2008. "Analysis of the ( Q , r ) Inventory Model for Perishables with Positive Lead Times and Lost Sales," Operations Research, INFORMS, vol. 56(5), pages 1238-1246, October.
    24. Pahl, Julia & Voß, Stefan, 2014. "Integrating deterioration and lifetime constraints in production and supply chain planning: A survey," European Journal of Operational Research, Elsevier, vol. 238(3), pages 654-674.
    25. Bonney, Maurice & Jaber, Mohamad Y., 2011. "Environmentally responsible inventory models: Non-classical models for a non-classical era," International Journal of Production Economics, Elsevier, vol. 133(1), pages 43-53, September.
    26. Haijema, René & Minner, Stefan, 2019. "Improved ordering of perishables: The value of stock-age information," International Journal of Production Economics, Elsevier, vol. 209(C), pages 316-324.
    27. Haijema, René & Minner, Stefan, 2016. "Stock-level dependent ordering of perishables: A comparison of hybrid base-stock and constant order policies," International Journal of Production Economics, Elsevier, vol. 181(PA), pages 215-225.
    28. Fichtinger, Johannes & Ries, Jörg M. & Grosse, Eric H. & Baker, Peter, 2015. "Assessing the environmental impact of integrated inventory and warehouse management," International Journal of Production Economics, Elsevier, vol. 170(PC), pages 717-729.
    29. Ries, J. M. & Grosse, E. H. & Fichtinger, J., 2017. "Environmental impact of warehousing: A scenario analysis for the United States," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 82128, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    30. 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.
    31. Yosef Daryanto & Hui-Ming Wee & Kuo-Hsing Wu, 2021. "Revisiting sustainable EOQ model considering carbon emission," International Journal of Manufacturing Technology and Management, Inderscience Enterprises Ltd, vol. 35(1), pages 1-11.
    32. Yonit Barron & Opher Baron, 2020. "The residual time approach for (Q, r) model under perishability, general lead times, and lost sales," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 92(3), pages 601-648, December.
    33. Jörg M. Ries & Eric H. Grosse & Johannes Fichtinger, 2017. "Environmental impact of warehousing: a scenario analysis for the United States," International Journal of Production Research, Taylor & Francis Journals, vol. 55(21), pages 6485-6499, November.
    34. Jack A. A. Veen & V. Venugopal, 2014. "Economic and Environmental Performance of the Firm: Synergy or Trade-Off? Insights from the EOQ Model," International Series in Operations Research & Management Science, in: Tsan-Ming Choi (ed.), Handbook of EOQ Inventory Problems, edition 127, pages 121-137, Springer.
    35. Zied Jemai & Chaaben Kouki & Evren Sahin & Yves Dallery, 2014. "Analysis of a periodic review inventory control system with perishables having random lifetime," Post-Print hal-01672391, HAL.
    36. Yann Bouchery & Asma Ghaffari & Zied Jemai & Jan Fransoo, 2016. "Sustainable transportation and order quantity: insights from multiobjective optimization," Flexible Services and Manufacturing Journal, Springer, vol. 28(3), pages 367-396, September.
    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. 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.

    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. 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.
    2. Konur, Dinçer & Campbell, James F. & Monfared, Sepideh A., 2017. "Economic and environmental considerations in a stochastic inventory control model with order splitting under different delivery schedules among suppliers," Omega, Elsevier, vol. 71(C), pages 46-65.
    3. Hansen, Ole & Transchel, Sandra & Friedrich, Hanno, 2023. "Replenishment strategies for lost sales inventory systems of perishables under demand and lead time uncertainty," European Journal of Operational Research, Elsevier, vol. 308(2), pages 661-675.
    4. 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.
    5. Engebrethsen, Erna & Dauzère-Pérès, Stéphane, 2019. "Transportation mode selection in inventory models: A literature review," European Journal of Operational Research, Elsevier, vol. 279(1), pages 1-25.
    6. Schaefer, Brian & Konur, Dinçer, 2015. "Economic and environmental considerations in a continuous review inventory control system with integrated transportation decisions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 80(C), pages 142-165.
    7. Battini, Daria & Glock, Christoph H. & Grosse, Eric H. & Persona, Alessandro & Sgarbossa, Fabio, 2017. "Reprint of “Ergo-lot-sizing: An approach to integrate ergonomic and economic objectives in manual materials handling”," International Journal of Production Economics, Elsevier, vol. 194(C), pages 32-42.
    8. Kouki, Chaaben & Jemaï, Zied & Minner, Stefan, 2015. "A lost sales (r, Q) inventory control model for perishables with fixed lifetime and lead time," International Journal of Production Economics, Elsevier, vol. 168(C), pages 143-157.
    9. Pablo Becerra & Josefa Mula & Raquel Sanchis, 2022. "Sustainable Inventory Management in Supply Chains: Trends and Further Research," Sustainability, MDPI, vol. 14(5), pages 1-19, February.
    10. Gioia, Daniele Giovanni & Minner, Stefan, 2023. "On the value of multi-echelon inventory management strategies for perishable items with on-/off-line channels," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 180(C).
    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. Kouki, Chaaben & Babai, M. Zied & Minner, Stefan, 2018. "On the benefit of dual-sourcing in managing perishable inventory," International Journal of Production Economics, Elsevier, vol. 204(C), pages 1-17.
    13. Brandenburg, Marcus, 2017. "A hybrid approach to configure eco-efficient supply chains under consideration of performance and risk aspects," Omega, Elsevier, vol. 70(C), pages 58-76.
    14. 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.
    15. Julia Freis & Philipp Vohlidka & Willibald A. Günthner, 2016. "Low-Carbon Warehousing: Examining Impacts of Building and Intra-Logistics Design Options on Energy Demand and the CO 2 Emissions of Logistics Centers," Sustainability, MDPI, vol. 8(5), pages 1-36, May.
    16. Sara Perotti & Lorenzo Bruno Prataviera & Marco Melacini, 2022. "Assessing the environmental impact of logistics sites through CO2eq footprint computation," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1679-1694, May.
    17. Suchitra Pattnaik & Mitali Madhusmita Nayak & Stefano Abbate & Piera Centobelli, 2021. "Recent Trends in Sustainable Inventory Models: A Literature Review," Sustainability, MDPI, vol. 13(21), pages 1-20, October.
    18. Dye, Chung-Yuan & Yang, Chih-Te, 2015. "Sustainable trade credit and replenishment decisions with credit-linked demand under carbon emission constraints," European Journal of Operational Research, Elsevier, vol. 244(1), pages 187-200.
    19. Y Bouchery & Asma Ghaffari & Zied Jemai & Jan C Fransoo, 2016. "Sustainable transportation and order quantity: insights from multiobjective optimization," Post-Print hal-01954465, HAL.
    20. Bozorgi, Ali & Pazour, Jennifer & Nazzal, Dima, 2014. "A new inventory model for cold items that considers costs and emissions," International Journal of Production Economics, Elsevier, vol. 155(C), pages 114-125.

    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:274:y:2024:i:c:s092552732400166x. 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.