An Assessment of FIFO and LIFO Policies for Perishable Inventory Systems Using the System Dynamics Approach

Ching, Phoebe Mae L.; Wu, Judy Ann G.

doi:10.1109/iea.2019.8714839

Cited by 5 publications

(2 citation statements)

References 14 publications

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“…A priority determination mechanism is needed in product certification services. The First In First Out (FIFO) method is a queuing method that is generally used in setting process queues [5][6][7]. Queuing arrangements using the first come first in process or FIFO method will not be appropriate for every item because each item cannot be treated the same.…”

Section: Introductionmentioning

confidence: 99%

New Selection Algorithm on Priority Service for Certification Queue Service Information System in BARISTRAND

Nugroho¹,

Sukmaaji²,

Rahmawati³

et al. 2022

JUITA

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Queue management for product certification of perishable goods is a major problem faced by the Surabaya Industrial Standardization and Research Institute (BARISTAND). The purpose of this study is to combine the use of the First in first out (FIFO), First Expired First Out (FEFO) and Least Shelf Life First Out (LSFO) methods into an automatic queuing system that can ensure effective service performance in queue management. This research was conducted using qualitative methods with observations to collect data and processes about how the product certification queue process flow at the Surabaya Industrial Standardization and Research Institute (BARISTRAN). The results show that the service only requires an average service completion time of 0.14 products per minute, meaning that every hour it can serve approximately 8.4 products. The conclusion of the research system has succeeded in determining the queue based on the use of the First in first out (FIFO), First Expired First Out (FEFO) and Least Shelf Life First Out (LSFO) methods, and customers can perform the tracking process to find out the certification process for the registered products.

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Section: Introductionmentioning

confidence: 99%

New Selection Algorithm on Priority Service for Certification Queue Service Information System in BARISTRAND

Nugroho¹,

Sukmaaji²,

Rahmawati³

et al. 2022

JUITA

View full text Add to dashboard Cite

show abstract

“…This is done for the purpose of demonstrating how the SD methodology can be applied in designing managerial guidelines, with proof that use of these guidelines will generate significant improvement for the system. As SD has already generated insights for general supply chain settings [20], [21], this study now investigates how perishability can alter the results, given that perishability has been proven to be a significant differentiating factor in previous studies [22]- [24]. Through its high-level perspective, the current study aims to identify impactful areas for solution development in the perishable inventory scenario.…”

Section: Introductionmentioning

confidence: 99%

Assessment of the Quality and Sustainability Implications of FIFO and LIFO Inventory Policies through System Dynamics

Ching¹,

Mutuc²,

Jose³

2019

Adv. sci. technol. eng. syst. j.

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Perishable inventory management contributes simultaneously to society and the economy, by reducing food wastage and capitalizing on the freshness of goods. For this reason, countless mathematical models have been developed for their effectiveness and costefficient management. Yet, the majority of these models can only optimize systems for a limited time frame, allowing for small gains in operations management, but failing to change the recurring patterns in inventory levels. System dynamics (SD) modelling shifts emphasizes these patterns and the recurring decisions that make them. Moreover, the framework has generated insight for other supply chain cases that could not have been derived from a short-term perspective. Thus, the current study now seeks to apply the SD framework in modelling perishable inventory systems, in designing policies that benefit the environment and the economy by reducing waste production and increasing the viability of goods reaching the customer. In particular, it evaluates the impact of opposing issuance policies (i.e. First-In-First-Out (FIFO) and Last-In-First-Out (LIFO)) on perishables to demonstrate the potential of SD in improving perishable inventory management. The simulated results share the sentiments of optimization models, that FIFO will ultimately generate less wastes and incur less material costs. Yet, the simulations also reveal implementing FIFO will result in larger fluctuations in inventory levels, which imply greater inconsistency in age-based quality. These suggest that LIFO would be preferable for quality-sensitive products, while FIFO would be preferable for cases sensitive to waste production. The current study demonstrates the efficiency of system dynamics in generating insight beyond that which can be derived from the existing mathematical models. Future studies may likewise extend this approach in the evaluation of policies on the use of technology in perishable inventory systems, which are the prevalent in present literature.

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Integrated regional waste management to minimise the environmental footprints in circular economy transition

Fan

Jiang

Klemeš

et al. 2021

Resources, Conservation and Recycling

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An Assessment of FIFO and LIFO Policies for Perishable Inventory Systems Using the System Dynamics Approach

Cited by 5 publications

References 14 publications

New Selection Algorithm on Priority Service for Certification Queue Service Information System in BARISTRAND

New Selection Algorithm on Priority Service for Certification Queue Service Information System in BARISTRAND

Assessment of the Quality and Sustainability Implications of FIFO and LIFO Inventory Policies through System Dynamics

Integrated regional waste management to minimise the environmental footprints in circular economy transition

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