Backroom effect on perishable inventory management with IoT information
Lin Li,
Ou Tang,
Wei Zhou and
Tijun Fan
International Journal of Production Research, 2023, vol. 61, issue 12, 4157-4179
Abstract:
We introduce an original concept of the backroom effect for perishable products when the deterioration rate in a backroom is lower than that on retail shelves. With IoT-generated real-time information about the perishable products, this phenomenon has a significant impact on joint shelf-space and inventory decisions. We define the deterioration rate gap, formulate the perceived on-shelf product freshness, and describe the freshness-dependent demand distribution, with continuous backroom-shelf replenishment. Assuming that demand depends on both perceived freshness and shelf level, we develop a decision-making model that simultaneously determines the inventory replenishment policy and the shelf space allocation for multiple items. To facilitate the solution process, we propose a hybrid solution approach by combining genetic algorithm (GA) and variable neighbourhood search (VNS). The results provide a prioritised inventory policy for item selection that incorporates the deterioration improvement. The results of the performance analysis show that a policy considering the backroom effect achieves increased profit when the backroom/shelf deterioration gap increases. The optimal solutions for the problems with large backroom/shelf gap also show that the practitioner should increase the ordering quantity, which is contradictory to the outcome of traditional models.
Date: 2023
References: Add references at CitEc
Citations:
Downloads: (external link)
http://hdl.handle.net/10.1080/00207543.2021.1960447 (text/html)
Access to full text is restricted to subscribers.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:taf:tprsxx:v:61:y:2023:i:12:p:4157-4179
Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/TPRS20
DOI: 10.1080/00207543.2021.1960447
Access Statistics for this article
International Journal of Production Research is currently edited by Professor A. Dolgui
More articles in International Journal of Production Research from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().