An MILP approximation for ordering perishable products with non-stationary demand and service level constraints

Karin G.J. Pauls-Worm, Eligius M.T. Hendrix, René Haijema and Jack G.A.J. van der Vorst

International Journal of Production Economics, 2014, vol. 157, issue C, 133-146

Abstract: We study the practical production planning problem of a food producer facing a non-stationary erratic demand for a perishable product with a fixed life time. In meeting the uncertain demand, the food producer uses a FIFO issuing policy. The food producer aims at meeting a certain service level at lowest cost. Every production run a setup cost is incurred. Moreover, the producer has to deal with unit production cost, unit holding cost and unit cost of waste. The production plan for a finite time horizon specifies in which periods to produce and how much.

Keywords: Perishable product; Non-stationary stochastic demand; Service-level constraint; Periodic review (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:157:y:2014:i:c:p:133-146

DOI: 10.1016/j.ijpe.2014.07.020

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