Age-based vs. stock level control policies for a perishable inventory system
Date
2001Source Title
European Journal of Operational Research
Print ISSN
0377-2217
Electronic ISSN
1872-6860
Volume
134
Issue
2
Pages
309 - 329
Language
English
Type
ArticleItem Usage Stats
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Abstract
In this study, we investigate the impact of modified lotsize-reorder control policy for perishables which bases replenishment decisions on both the inventory level and the remaining lifetimes of items in stock. We derive the expressions for the key operating characteristics of a lost sales perishable inventory model, operating under the proposed age-based policy, and examine the sensitivity of the optimal policy parameters with respect to various system parameters. We compare the performance of the suggested policy to that of the classical (Q,r) type policy through a numerical study over a wide range of system parameters. Our findings indicate that the age-based policy is superior to the stock level policy for slow moving perishable inventory systems with high service levels.
Keywords
InventoryLost sales
Perishable
Computational methods
Decision making
Decision theory
Inventory control
Purchasing
Resource allocation
Sensitivity analysis
Strategic planning
Modified lotsize-reorder control policy
Perishable inventory systems
Operations research