An effective approach for optimization of a perishable inventory system with uncertainty in both demand and supply

Nguyen, Dục Huy; Chen, Haoxun

doi:10.1111/itor.12846

Cited by 16 publications

(6 citation statements)

References 82 publications

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“…Fresh food supply chains have been widely studied in previous research with its focus on the sectors of production, inventory, transportation, distribution, and sales. In the field of production and inventory, ordering, inventory, and replenishment decisions are discussed considering food deterioration and demand uncertainty, such as Constantin and Hassan (2020), Yang et al (2022), and Nguyen and Chen (2022). In the sector of transportation or distribution, scholars optimize routing and distribution decisions (Chan et al, 2020;Davila-Pena et al, 2023).…”

Section: Fresh Food Supply Chain Managementmentioning

confidence: 99%

Disposable or reusable? Packaging strategy and pricing decision for fresh food considering environmental policies

Wang

Zhao

2022

Int Trans Operational Res

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Packaging has become an important concern of fresh food supply chains and will exert a growing influence under environmental policies. In this paper, we have discussed three specific issues to investigate fresh food supply chains’ packaging strategy, that is, whether to use disposable packaging containers (DPCs) or reusable packaging containers (RPCs), whether to purchase or rent RPCs, and the influences of environmental policies. Our research has generated some key findings. First, we find that penalty (such as taxes) and reward (such as subsidies) are simultaneously needed to motivate supply chains to choose RPCs. In terms of the “purchasing or renting” choice, it highly depends on the relative magnitude of the purchase and rental subsidies, along with the number of uses of RPCs and the perishability of fresh food. We also conclude that reusing RPCs for more times has two‐sided effects, that is, the effect of cost saving and the effect of accelerated deterioration. Thus, it is not recommended to excessively reuse RPCs. In addition, we make two extensions. First, we consider endogenous tax rate and subsidy rates and discuss from the perspective of social welfare. Second, we consider endogenous sales price and rental price of RPCs and study the optimal decisions of the RPC operator. Results show that the government should establish a classified tax and subsidy system for packaging containers, and meanwhile benchmarking prices for RPC services should be set to curb the RPC operator's free‐riding behavior.

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Section: Fresh Food Supply Chain Managementmentioning

confidence: 99%

Disposable or reusable? Packaging strategy and pricing decision for fresh food considering environmental policies

Wang

Zhao

2022

Int Trans Operational Res

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“…The setup considers a two-phased inventory model for a food industry where the inventory is perishable, but can be renewed by additional processing. The design of supply chain networks for perishable goods under uncertainty was also addressed by Nguyen and Chen [17], Yavari and Geraeli [18], Chen et al [19], among others. The problem of order sizing, crucial in inventory management, was addressed by Seubert et al [20], among others.…”

Section: Motivationmentioning

confidence: 99%

Optimal Production and Inventory Policy in a Multiproduct Bakery Unit

2021

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The problem of finding optimal production and inventory policies is crucial for companies of the food industry, especially those processing multiple products. Since companies are required to adopt the most efficient solutions to prosper, the operation at these optimal conditions can have an extensive impact on profit, resource allocation and product quality. We address the problem of finding the optimal production and inventory policy in a multiproduct bakery unit for two contexts: (i) deterministic consumption without inventory control; and (ii) stochastic consumption combined with delayed inventory control. A formulation is proposed for each of these two setups. The restrictions considered in the model framework are related to workforce availability, and the cost structure includes four components: (i) production cost; (ii) inventory cost; (iii) setup cost; and (iv) the cost due to the degradation of perceived quality. The problem is formulated as a Mixed Integer Linear Programming one and solved with a branch and cut algorithm-based solver. The formulation is applied to a real bakery unit producing a mix of eight products. Distinct demand and inventory lower levels are used for building scenarios to test both models and characterize the economic performance of the multiproduct bakery unit.

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“…Chen et al (2020) proposed the first learning algorithm for singleproduct, periodic-review, backlogging inventory systems with random production capacity. Nguyen and Chen (2020) studied an inventory problem of a perishable product with random deterioration rate under uncertainty in both demand and supply.…”

Section: Literature Reviewmentioning

confidence: 99%

Modelling sequence decision inventory management problem under fuzzy environment

Tian

Guo

2021

J. of Data, Inf. and Manag.

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This study considers a specific inventory management problem, where a retailer could arrange a series of sequential orders, and the next order is arranged after the yield of present stage is known. For this matter, a credibilistic dynamic programming model is formulated under uncertain supply and demand, and the mean cost convex programming model of each ordering stage is derived. The goal is to obtain the optimal order quantity at each stage under the uncertain supply and demand that are represented by fuzzy variables. By extending the analytical solutions of the optimal order quantities, the general expression of the optimal order quantity is obtained. Finally, some numerical experiments are conducted to illustrate the effectiveness of the solution, and the optimum results and sensitivity of parameters are illustrated both numerically and graphically. It showed that the effect of supply uncertainty could be mitigated by placing sequential orders in advance, and more bookings occur at the earlier stage due to the uncertainty of the next stage.

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An effective approach for optimization of a perishable inventory system with uncertainty in both demand and supply

Cited by 16 publications

References 82 publications

Disposable or reusable? Packaging strategy and pricing decision for fresh food considering environmental policies

Disposable or reusable? Packaging strategy and pricing decision for fresh food considering environmental policies

Optimal Production and Inventory Policy in a Multiproduct Bakery Unit

Modelling sequence decision inventory management problem under fuzzy environment

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