A Review and Reflection on Inventory Management of Perishable Products in a Single-echelon Model
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Duong, NKL
Wood, LC
Wang, W
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Inderscience
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.
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Performance metrics; Inventory control; Perishability; Continuous review; Deterioration
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International Journal of Operational Research, 2018 Vol.31 No.3, pp.313 - 329
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Copyright © Inderscience Enterprises Ltd., 2015. Authors retain the right to place his/her pre-publication version of the work on a personal website or institutional repository for non commercial purposes. The definitive version was published in (see Citation). The original publication is available at (see Publisher's Version).