Dynamic Optimization Model for Planning of Supply, Production, and Transportation of Perishable Product

Conference paper
Part of the Springer Proceedings in Business and Economics book series (SPBE)

Abstract

In this article, the dynamic optimization model for planning of raw materials supply, production of perishable finished product, and its transportation to destinations is proposed. It is assumed that the additional investments intended for decreasing raw materials and finished perishable product’s deterioration during its warehousing are provided. The above model is based on the Wagner–Whitin model in the inventory control theory and classical transportation problem. The objective was to maximize the total profit of supply chain over the given planning horizon. Two cases are considered in detail: (1) Demand at destinations is given and fixed and (2) demand is random with known probability densities.

Keywords

Supply Production Transportation Perishable finished product Planning Dynamic optimization Control of deterioration 

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Copyright information

© Springer International Publishing AG 2017

Authors and Affiliations

  1. 1.Odessa National Maritime UniversityOdessaUkraine
  2. 2.West Pomeranian University of TechnologySzczecinPoland

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