Authors: Ludmiła Filina-Dawidowicz, Mykhaylo Postan
Title: OPTIMAL INVENTORY CONTROL FOR PERISHABLE ITEMS UNDER ADDITIONAL COST FOR DETERIORATION REDUCTION
Keywords: inventory management; perishable product; control of deterioration; the generalized Wilson model; lot sizing optimization.
Background: This paper analyses the problems of carrying out inventory control of perishable goods subject to deterioration during warehousing. It aims to propose a generalization of the classical models used in optimal inventory control theory for perishable goods adapted for the case of additional expenses incurred by supply companies to goods' deterioration reduction.
Methods: A generalized Wilson model for optimal lot sizing has been developed. It is assumed that the rate of deterioration depends non-linearly on the volume of investment intended for a reduction in goods deterioration. The case of inverse power dependence is analyzed in details. Firstly, the generalized Wilson model for a single item is examined, and then this model is considered for multi-item case.
Results and conclusions: For the joint optimization of lot sizes and volumes of investments, corresponding non-linear optimization problems are formulated. Numerical results are presented to illustrate the model. It is indicated that the proposed optimization model can be used as the methodical basis for supply companies in their investment activities aimed at improving storage technology of perishable products.
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|MLA||Filina-Dawidowicz, Ludmiła, and Mykhaylo Postan. "Optimal inventory control for perishable items under additional cost for deterioration reduction." Logforum 12.2 (2016): 4. DOI: 10.17270/J.LOG.2016.2.4|
|APA||Ludmiła Filina-Dawidowicz1, Mykhaylo Postan2 (2016). Optimal inventory control for perishable items under additional cost for deterioration reduction. Logforum 12 (2), 4. DOI: 10.17270/J.LOG.2016.2.4|
|ISO 690||FILINA-DAWIDOWICZ, Ludmiła, POSTAN, Mykhaylo. Optimal inventory control for perishable items under additional cost for deterioration reduction. Logforum, 2016, 12.2: 4. DOI: 10.17270/J.LOG.2016.2.4|