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Cross perishable effect on optimal inventory preservation control
East China Univ Sci and Technol, Peoples R China; Qinghai Univ, Peoples R China.
ESCP Europe, France; ESCP Europe, France.
Linköping University, Department of Management and Engineering, Production Economics. Linköping University, Faculty of Science & Engineering.ORCID iD: 0000-0003-3058-7431
ESCP Europe, France.
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2019 (English)In: European Journal of Operational Research, ISSN 0377-2217, E-ISSN 1872-6860, Vol. 276, no 3, p. 998-1012Article in journal (Refereed) Published
Abstract [en]

It is very common that retailers are storing and managing perishables of multiple types together. Due to chemical or biological reactions, the preservation period of some perishables (e.g., vegetables, fruits, fish, meats) either prolongs or shortens with the co-storage of other product types. Although this phenomenon is significant, it has not been mentioned in the perishable inventory literature. Therefore in this research, we first introduce the concept of cross-perishability. We then formulate an inventory model with a novel control variable of preservation effort that in turn affects the preservation period with cross-perishability when multiple product-types coexist. With an Internet of Things (IoT) sensor system as the background, this model takes the advantage of real time data, based on which the cross perishable effect, inventory characteristics and control policy can be analyzed. Our results indicate that an integrated decision making mechanism with consideration of the cross perishable effect should lead to an improved global mixed perishable inventory policy, in terms of reducing the deterioration cost, decreasing the inventory level, and improving the perishables quality. We prove the upper and lower bound conditions for the decision variables and utilize this result to facilitate the searching algorithm for a fast convergence to the feasible global optima for the non-linear problem with multiple product types and cross perishable effects. In conclusion, we offer managerial and policy implication for the perishable inventory system where the cross perishable effect should be seriously considered. (C) 2019 Elsevier B.V. All rights reserved.

Place, publisher, year, edition, pages
ELSEVIER SCIENCE BV , 2019. Vol. 276, no 3, p. 998-1012
Keywords [en]
(D) OR in agriculture; Cross-perishability; IoT-enabled decision process; Adaptive perishable inventory management
National Category
Transport Systems and Logistics
Identifiers
URN: urn:nbn:se:liu:diva-156547DOI: 10.1016/j.ejor.2019.01.069ISI: 000463121000014OAI: oai:DiVA.org:liu-156547DiVA, id: diva2:1315888
Note

Funding Agencies|National Natural Science Foundation of China [71431004, 71573087, 71563039]

Available from: 2019-05-15 Created: 2019-05-15 Last updated: 2019-06-27

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Citation style
  • apa
  • harvard1
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  • modern-language-association-8th-edition
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More styles
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  • de-DE
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  • nn-NB
  • sv-SE
  • Other locale
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Output format
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