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An EOQ Model for Temperature-Sensitive Deteriorating Items in Cold Chain Operations

Author

Listed:
  • Ming-Fang Yang

    (Intelligent Maritime Research Center, National Taiwan Ocean University, Keelung City 20224, Taiwan
    Department of Transportation Science, National Taiwan Ocean University, Keelung City 20224, Taiwan)

  • Pei-Fang Tsai

    (Department of Industrial Engineering and Management, National Taipei University of Technology, Taipei 10608, Taiwan)

  • Meng-Ru Tu

    (Intelligent Maritime Research Center, National Taiwan Ocean University, Keelung City 20224, Taiwan
    Department of Transportation Science, National Taiwan Ocean University, Keelung City 20224, Taiwan)

  • Yu-Fang Yuan

    (Department of Transportation Science, National Taiwan Ocean University, Keelung City 20224, Taiwan)

Abstract

To improve the inventory management of cold chain logistics, we propose an economic order quantity (EOQ) inventory model for temperature-sensitive deteriorating products. Considering that the products are temperature-sensitive, the deterioration rate of the proposed model is a function of the temperature. In addition, the transportation cost, which is a function of the quantity ordered, is considered in this study. This article aims to find the optimal value of the total profit, selling price, and the length of the ordering cycle. Numerical examples are provided; the sensitivity analysis shows that the total profit is much more sensitive to transportation costs, compared with ordering and holding costs.

Suggested Citation

  • Ming-Fang Yang & Pei-Fang Tsai & Meng-Ru Tu & Yu-Fang Yuan, 2024. "An EOQ Model for Temperature-Sensitive Deteriorating Items in Cold Chain Operations," Mathematics, MDPI, vol. 12(5), pages 1-15, March.
    • Handle: RePEc:gam:jmathe:v:12:y:2024:i:5:p:775-:d:1351717
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    References listed on IDEAS

    as
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    2. Daryanto, Yosef & Wee, Hui Ming & Astanti, Ririn Diar, 2019. "Three-echelon supply chain model considering carbon emission and item deterioration," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 368-383.
    3. Morris A. Cohen, 1977. "Joint pricing and ordering policy for exponentially decaying inventory with known demand," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 24(2), pages 257-268, June.
    4. Wang, Kung-Jeng & Lin, Y.S. & Yu, Jonas C.P., 2011. "Optimizing inventory policy for products with time-sensitive deteriorating rates in a multi-echelon supply chain," International Journal of Production Economics, Elsevier, vol. 130(1), pages 66-76, March.
    5. Ming-Feng Yang & Wei-Chung Tseng, 2015. "Deteriorating Inventory Model for Chilled Food," Mathematical Problems in Engineering, Hindawi, vol. 2015, pages 1-10, April.
    6. Lin, Chinho & Lin, Yihsu, 2007. "A cooperative inventory policy with deteriorating items for a two-echelon model," European Journal of Operational Research, Elsevier, vol. 178(1), pages 92-111, April.
    Full references (including those not matched with items on IDEAS)

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