OR Spectrum

, Volume 32, Issue 4, pp 979–996 | Cite as

Periodic review inventory-control for perishable products under service-level constraints

Regular Aticle
First Online:

Abstract

Food retail inventory management faces major challenges by uncertain demand, perishability, and high customer service level requirements. In this paper, we present a method to determine dynamic order quantities for perishable products with limited shelf-life, positive lead time, FIFO or LIFO issuing policy, and multiple service level constraints. In a numerical study, we illustrate the superiority of the proposed method over commonly suggested order-up-to-policies. We show that a constant-order policy might provide good results under stationary demand, short shelf-life, and LIFO inventory depletion.

Keywords

Inventory Perishable products Service level 
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Copyright information

© Springer-Verlag 2010

Authors and Affiliations

  1. 1.Faculty of Business, Economics and StatisticsUniversity of ViennaViennaAustria
  2. 2.Smeal College of BusinessThe Pennsylvania State UniversityUniversity ParkUSA

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