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ISSN 1895-2038, e-ISSN:1734-459X

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Issue 2/ 2016, article 4

Ludmiła Filina-Dawidowicz, Mykhaylo Postan

OPTIMAL INVENTORY CONTROL FOR PERISHABLE ITEMS UNDER ADDITIONAL COST FOR DETERIORATION REDUCTION

Abstract:

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.

Keywords: inventory management; perishable product; control of deterioration; the generalized Wilson model; lot sizing optimization.

Full text available in in english in format: Adobe Acrobat pdf article nr 4 - pdf

Streszczenie w jezyku polskim Streszczenie w jezyku polskim.

Zusammenfassung in Deutsch Zusammenfassung in Deutsch.

DOI: 10.17270/J.LOG.2016.2.4
For citation:

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
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