 Order quantities for perishable inventory control with non-stationary demand and a fill rate constraintKarin G.J. Pauls-Worm, Eligius M.T. Hendrix, Alejandro G. Alcoba and René Haijema International Journal of Production Economics, 2016, vol. 181, issue PA, 238-246 Abstract: We study the practical decision problem of fresh food production with a long production lead time to decide every period (e.g. week) how many items to produce. When a batch is ready for use, its items have a fixed shelf life, after which the items become waste in the sense that they cannot be sold anymore. The demand for (fresh) food products is uncertain and highly fluctuating, mainly caused by price promotions of retail organisations. We focus on cases where a so-called cycle fill rate service level requirement applies. We investigate the generation of a production plan that fixes the timing and quantity of the production for a finite time horizon. To minimise waste, one issues the oldest items first, i.e. a FIFO issuing policy. In case of out-of-stock, sales are lost. Keywords: Production-inventory planning; Long lead time; Perishable product; Non-stationary stochastic demand; Fill rate (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:181:y:2016:i:pa:p:238-246 DOI: 10.1016/j.ijpe.2015.10.009 Access Statistics for this article International Journal of Production Economics is currently edited by Stefan Minner More articles in International Journal of Production Economics from Elsevier |
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