A Review and Reflection on Inventory Management of Perishable Products in a Single-echelon Model
Duong, NKL; Wood, LC; Wang, W
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This paper reviews research on single-echelon inventory management of perishable products using the continuous replenishment model. A steady progression of research in this area has included of a range of parameters and is reaching a saturation point where models appear effective and cover a range of realistic situations for single-echelon management. However, research has rested on the assumption that a total cost or profit metric should be used when answering the replenishment questions of when and how much to order. This total cost metric is less appropriate when considering a holistic or systemic modelling of the company where the balance in measurements between departments and the continuous improvement are priority. From this perspective, we outline concerns with existing approaches using a total cost metric when applied to a company. Instead of using approximation methods to minimize total costs in a single department, managers should focus on multi-metric performance measures to improve system-wide results. In this paper, we present a method to compare the replenishment model using multi-metric performance measures and those with the traditional total cost measures.
KeywordsPerformance metrics; Inventory control; Perishability; Continuous review; Deterioration
DateMay 1, 2015
SourceInternational Journal of Operational Research, 2018 Vol.31 No.3, pp.313 - 329
Item TypeJournal Article