IDEAS home Printed from https://ideas.repec.org/a/inm/oropre/v29y1981i1p95-107.html
   My bibliography  Save this article

Allocation of a Perishable Product Inventory

Author

Listed:
  • Gregory P. Prastacos

    (University of Pennsylvania, Philadelphia, Pennsylvania)

Abstract

A perishable product is periodically produced and allocated among n locations in a region. It is assumed that costs are charged for units short or outdated at any location, and the excess demand at any location is satisfied from outside sources. We prove that the optimal allocation policy minimizes both the expected average shortages and the expected average outdates in the region, and we discuss the management implications of this result. We present the myopically optimal policy M and show that it has similar properties to the optimal policy π*. We prove that π* cannot be “very different” from M ; we derive analytic bounds for the performance of π*, and show that the long-run performance of M lies always within these bounds. Finally, some computational results are presented.

Suggested Citation

  • Gregory P. Prastacos, 1981. "Allocation of a Perishable Product Inventory," Operations Research, INFORMS, vol. 29(1), pages 95-107, February.
    • Handle: RePEc:inm:oropre:v:29:y:1981:i:1:p:95-107
    DOI: 10.1287/opre.29.1.95
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/opre.29.1.95
    Download Restriction: no
    File URL: https://libkey.io/10.1287/opre.29.1.95?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
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Padmanabhan, G. & Vrat, Prem, 1995. "EOQ models for perishable items under stock dependent selling rate," European Journal of Operational Research, Elsevier, vol. 86(2), pages 281-292, October.
    2. 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.
    3. Anand Paul & Tharanga Rajapakshe & Suman Mallik, 2019. "Socially Optimal Contracting between a Regional Blood Bank and Hospitals," Production and Operations Management, Production and Operations Management Society, vol. 28(4), pages 908-932, April.
    4. Puranam, Kartikeya & Novak, David C. & Lucas, Marilyn T. & Fung, Mark, 2017. "Managing blood inventory with multiple independent sources of supply," European Journal of Operational Research, Elsevier, vol. 259(2), pages 500-511.
    5. Peter L. Jackson & John A. Muckstadt, 1989. "Risk pooling in a two‐period, two‐echelon inventory stocking and allocation problem," Naval Research Logistics (NRL), John Wiley & Sons, vol. 36(1), pages 1-26, February.
    6. Neves-Moreira, Fábio & Almada-Lobo, Bernardo & Guimarães, Luís & Amorim, Pedro, 2022. "The multi-product inventory-routing problem with pickups and deliveries: Mitigating fluctuating demand via rolling horizon heuristics," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    7. Duan, Qinglin & Liao, T. Warren, 2014. "Optimization of blood supply chain with shortened shelf lives and ABO compatibility," International Journal of Production Economics, Elsevier, vol. 153(C), pages 113-129.
    8. Beliën, Jeroen & Forcé, Hein, 2012. "Supply chain management of blood products: A literature review," European Journal of Operational Research, Elsevier, vol. 217(1), pages 1-16.

    More about this item

    Statistics

    Access and download statistics

    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:inm:oropre:v:29:y:1981:i:1:p:95-107. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    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.