<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>In this paper, an extremely short shelf-life inventory of age-discriminated stochastic demand is considered. Age discriminated demand can be found in products of high circulation and short shelf-lives such as dairy products, packaged food, pharmaceutical products and medical products of short shelf lives. Simulation based optimization is considered to find the optimal order quantity. The model employs Discrete Event Simulation along with a modified simulated annealing algorithm. To validate the model and the optimization algorithm, the classical newsvendor problem is tested first, later, different experiments are carried out for different product lifetimes. In contrast to the classical newsvendor, this problem tackles a multi-period inventory of different ages and different demand distributions. The objective is to determine the optimal order quantity to satisfy the stochastic demand of all ages such that shortages and expirations are minimized. The results showed remarkable performance and outstanding minimum levels of shortage and expiration.</p>
</abstract>

In this paper, an extremely short shelf-life inventory of age-discriminated stochastic demand is considered. Age discriminated demand can be found in products of high circulation and short shelf-lives such as dairy products, packaged food, pharmaceutical products and medical products of short shelf lives. Simulation based optimization is considered to find the optimal order quantity. The model employs Discrete Event Simulation along with a modified simulated annealing algorithm. To validate the model and the optimization algorithm, the classical newsvendor problem is tested first, later, different experiments are carried out for different product lifetimes. In contrast to the classical newsvendor, this problem tackles a multi-period inventory of different ages and different demand distributions. The objective is to determine the optimal order quantity to satisfy the stochastic demand of all ages such that shortages and expirations are minimized. The results showed remarkable performance and outstanding minimum levels of shortage and expiration.

Multi-Period Age-Discriminated Perishable Inventory

Management Systems in Production Engineering

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Multi-Period Age-Discriminated Perishable Inventory"}

In this paper, an extremely short shelf-life inventory of age-discriminated stochastic demand is considered. Age discriminated demand can be found in products...

Multi-Period Age-Discriminated Perishable Inventory

Pubblicato online: 21 mag 2021

Pagine: 97 - 105

Ricevuto: 01 set 2020

Accettato: 01 gen 2021

DOI: https://doi.org/10.2478/mspe-2021-0013

Parole chiave
probabilistic inventory, demand, age discrimination, newsvendor, supply chain

© 2021 Wasfi Alrawabdeh, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Multi-Period Age-Discriminated Perishable Inventory

Pubblicato online: 21 mag 2021

Pagine: 97 - 105

Ricevuto: 01 set 2020

Accettato: 01 gen 2021

DOI: https://doi.org/10.2478/mspe-2021-0013

Parole chiaveprobabilistic inventory, demand, age discrimination, newsvendor, supply chain

© 2021 Wasfi Alrawabdeh, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Parole chiave
probabilistic inventory, demand, age discrimination, newsvendor, supply chain