An approximate periodic model for fixed-life perishable products in a two-echelon inventory–distribution system

Kanchanasuntorn, Kanchana; Techanitisawad, Anulark

doi:10.1016/j.ijpe.2004.10.010

Cited by 62 publications

(20 citation statements)

References 23 publications

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“…They are generally discussed in the literature by approximate methods (Boudia et al [4], Chern et al [7], Lejeune [16], Basnet et al [3]), or by simulation techniques (Kanchanasuntorn and Techanitisawad [13], Prins et al [2]). Most of the work considers supply chains reduced to a few steps (Hindi et al [12], Basnet et al [3]), addresses some very specific network structures as Brecman et al [6], or still considers only one type of product, such as articles Boudia et al [4], Lee et al [15], Li et al [17], Brahimi et al [5] et Absi et al [1].…”

Section: Literature Reviewmentioning

confidence: 99%

“…Our model also penalises advances. Finally, few articles consider perishable products, as in Kanchanasuntorn and Techanitisawad [13].…”

Section: Literature Reviewmentioning

confidence: 99%

“…The lot size of the shipped quantities is respected via the constraint (3). Constraints (4), (5), (9), (10), (13) and (14) concern the minimum quantities for the receipt quantities at the distribution centers and the warehouses, and the shipped quantities on the routes. If the transport calendar is open, the shipping quantity arrives at the distribution center after the lead time (6).…”

Section: B Milp Formulationmentioning

confidence: 99%

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Iterated local search with neighborhood space reduction for two-echelon distribution network for perishable products

Kande¹,

Prins²,

Belgacem³

et al. 2014

2014 IEEE Symposium on Computational Intelligence in Production and Logistics Systems (CIPLS)

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This article presents a planning problem in a distribution network incorporating two levels of inventory management. Perishable products are routed with lot-sizing, multisourcing and limited transport capacity using a homogeneous fleet of vehicles. A mixed integer linear programming (MILP) and a greedy heuristic have been developed to solve this real planning problem. There are some instances for which the solver cannot give a good lower bound within the limited time and for other instances it takes a lot of time to solve MILP. The greedy heuristic is an alternative to the mixed integer linear program, used to quickly solve some large instances taking into account original and difficult constraints. For some instances the gap between the solution provided by the solver (MILP) and the heuristic becomes quite significant. An iterated local search (ILS) using the variable neighborhood descent (VND) method has been implemented to improve the quality of heuristic solutions. We have included the ILS method in an APS (Advanced Planning System) and have compared it with an exact resolution of the MILP. Two types of instances are tested: models derived from actual data and models built using a random generator of instances that have wider diversity for computational evaluation. The ILS procedure significantly improves the quality of solutions and average computational time is much shorter than MILP resolution.

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Section: Literature Reviewmentioning

confidence: 99%

“…Our model also penalises advances. Finally, few articles consider perishable products, as in Kanchanasuntorn and Techanitisawad [13].…”

Section: Literature Reviewmentioning

confidence: 99%

Section: B Milp Formulationmentioning

confidence: 99%

See 1 more Smart Citation

Iterated local search with neighborhood space reduction for two-echelon distribution network for perishable products

Kande¹,

Prins²,

Belgacem³

et al. 2014

2014 IEEE Symposium on Computational Intelligence in Production and Logistics Systems (CIPLS)

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“…D(t) = αi β , α > 0, and 0 < β < 1. Kanchana and Anulark [4] investigates the effect of product perishability and retailers' stockout policy on system total cost, net profit, service level, and average inventory level in a two-echelon inventory-distribution system. Weng and McClurg [5] studies a two-party system, in which the buyer orders a product from the supplier, whose delivery time is uncertain.…”

Section: Introductionmentioning

confidence: 99%

An Optimal Procurement Policy for Items with Stock-Dependent Demand Rate and Fixed Lifetime

Duan

Huo

Luo

2008

2008 4th International Conference on Wireless Communications, Networking and Mobile Computing

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This paper investigates an optimal procurement policy for items with fixed lifetime. So any units which remain unused by their expiry date are considered outdated, and must be disposed of. The demand rate of items is assumed to be a function of current inventory level if the inventory is greater than or equal to S 0, and is constant if the inventory is less than S 0. For the system presented, a mathematical model and solution methodology are developed. At last, a numerical example is presented to illustrate the methodology.Key words-Inventory; stock-dependent demand rate; fixed lifetime I. INTRODUCTION Due to their limited product lifetime, the problem to determine suitable ordering policy is an important problem for many items such as cans of fruit, foodstuffs and drugs, et al. Perry and Posner [1] considered an (S − 1, S) system in which an order for exactly one item is placed at each time that a demand is satisfied as well as at each occurrence of an outdating of an item. Giri and Chaudhuri [2] considered deteriorating items with nonlinear holding cost. Hwang and Hahn [3] studied procurement policy for items with fixed life time and an inventory level-dependent demand rate, i.e. D(t) = αi β , α > 0, and 0 < β < 1. Kanchana and Anulark [4] investigates the effect of product perishability and retailers' stockout policy on system total cost, net profit, service level, and average inventory level in a two-echelon inventory-distribution system. Weng and McClurg [5] studies a two-party system, in which the buyer orders a product from the supplier, whose delivery time is uncertain. The buyer is faced with random demand over a selling period of fixed length. Chung and Lin [6] investigate inventory replenishment problem for deteriorating items taking account of time value of money over a fixed planning horizon. Perrya and Stadjeb [7] studies a Poisson inventory model for perishable goods in which the items have random lifetimes and are scrapped either when reaching the end of their lifetime or a fixed constant expiration age. Fujiwara, Soewandi and Sedarage [8] considers the problem of ordering and issuing policies arising in controlling finite-life-time fresh-meat-carcass inventories in supermarkets.For a retailer who deals with products such as foodstuffs, the dependency of sales volume on the amount of inventory displayed and the perishable nature of the product become

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“…Arcelus et al (2003) modeled a profitmaximizing retail promotion strategy for a retailer confronted with a vendor's trade promotion offer of credit and/or price discount on the purchase of regular or perishable products. Kanchanasuntorn and Techanitisawad (2006) investigated the effect of product deterioration and retailers' stockout policies on system total cost, net profit, service level, and average inventory level in a two-echelon inventory-distribution system, and developed an approximate inventory model to evaluate system performance. There are many papers addressing the interaction and coordination between inventory and marketing, financing, distribution, and production.…”

Section: Introductionmentioning

confidence: 99%

Analysis of postponement strategy for perishable items by EOQ-based models

Cheng

Wang

2007

International Journal of Production Economics

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This paper develops EOQ-based models with perishable items to evaluate the impact of a form postponement strategy on the retailer in a supply chain. We formulate models for a postponement system and an independent system to minimize the total average cost function per unit time for ordering and keeping n perishable end-products. An algorithm is given to derive the optimal solutions of the proposed models. The impact of the deterioration rate on the inventory replenishment policies is studied with the help of theoretical analysis and numerical examples. Our theoretical analysis and computational results show that a postponement strategy for perishable items can give a lower total average cost under certain circumstances.

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An approximate periodic model for fixed-life perishable products in a two-echelon inventory–distribution system

Cited by 62 publications

References 23 publications

Iterated local search with neighborhood space reduction for two-echelon distribution network for perishable products

Iterated local search with neighborhood space reduction for two-echelon distribution network for perishable products

An Optimal Procurement Policy for Items with Stock-Dependent Demand Rate and Fixed Lifetime

Analysis of postponement strategy for perishable items by EOQ-based models

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