A Review and Reflection on Inventory Management of Perishable Products in a Single-echelon Model
Duong, NKL; Wood, LC; Wang, W
Abstract
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.
Keywords
Performance metrics; Inventory control; Perishability; Continuous review; DeteriorationDate
May 1, 2015Source
International Journal of Operational Research, 2018 Vol.31 No.3, pp.313 - 329Item Type
Journal ArticlePublisher
IndersciencePublisher's Version
http://www.inderscience.com/info/ingeneral/forthcoming.php?jcode=ijor10.1504/IJOR.2018.089734