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Multi-product inventory model for cold items with cost and emission consideration

Ali Bozorgi

International Journal of Production Economics, 2016, vol. 176, issue C, 123-142

Abstract: While sharing storage and transportation units is common for many product types, cold items usually have different temperature requirements and as a result, not all items can share a holding/transportation unit. Consequently, the type of products and their compatibility with other products needs to be considered in the inventory model. In this paper, we propose multi-product inventory models for cold items. The models determine the inventory levels that minimize either the cost or carbon-equivalent emissions. We model the compatibility of items as a constraint in the inventory model. To solve the model, we first find an appropriate “family of products” that can share a storage/transportation unit. Then, for each family of products we develop an approximate solution method to determine the order quantity of each product within a family. Numerical experiments demonstrate the solution procedure, and provide managerial insights into cold item inventory policies.

Keywords: Multi-product; Lot sizing models; Sustainability; Cold supply chain; Unit capacity (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:176:y:2016:i:c:p:123-142

DOI: 10.1016/j.ijpe.2016.03.011

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