Abstract
In many industrial environments there is a significant class of problems for which the perishable nature of the inventory cannot be ignored in developing replenishment order plans. Food is the most salient example of a perishable inventory item. In this work, we consider the periodic-review, single-location, single-product production/inventory control problem under non-stationary stochastic demand and service level constraints. The product we consider can be held in stock for a limited amount of time after which it expires and it must be disposed of at a cost. In addition to wastage costs, our cost structure comprises fixed and unit variable ordering costs, and inventory holding costs. We propose an easy-to-implement replenishment cycle
inventory control policy that yields at most 2N control parameters, where N is the number of periods in our planning horizon. We also show, on a simple numerical example, the improvement brought by this policy over two other simpler inventory control rules of common use.
inventory control policy that yields at most 2N control parameters, where N is the number of periods in our planning horizon. We also show, on a simple numerical example, the improvement brought by this policy over two other simpler inventory control rules of common use.
Original language | English |
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Title of host publication | Proceedings of the 24th MEC-EurOPT-2010, June 23-26, 2010, Izmir, Turkey |
Editors | Refail Kasımbeyli, Cemali Dinçer, Selin Özpeynirci, Leonidas Sakalauskas |
Place of Publication | Izmir, Turkey |
Publisher | VGTU Publishing House “Technika” |
Pages | 241-247 |
Number of pages | 7 |
ISBN (Print) | 978-9955-28-597-7 |
Publication status | Published - 2010 |
Event | 24th Mini EURO Conference on Continuous Optimization and Information-Based Technologies in the Financial Sector (MEC EurOPT 2010) - Izmir, Turkey Duration: 23 Jun 2010 → 26 Jun 2010 |
Conference
Conference | 24th Mini EURO Conference on Continuous Optimization and Information-Based Technologies in the Financial Sector (MEC EurOPT 2010) |
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Country/Territory | Turkey |
City | Izmir |
Period | 23/06/10 → 26/06/10 |