Optimal Issuing of Perishables with a Short Fixed Shelf Life
The management of inventories of perishable products with a short maximal shelf life takes a good issuing policy next to a good ordering policy. Ordering policies of non-perishables are well studied in literature and implemented in Automated Store Ordering (ASO) systems and Computer Assisted Ordering (CAO) systems. These ordering policies are stock-level dependent and do not take the product ages into account. As a consequence when applied to perishable products they do not anticipate expected future outdating of products and thus result in unnecessary outdating and shortages. Improved ordering policies are proposed in the literature but hardly implemented in ASO and CAO systems as these are designed for the management of non-perishables. Without changing the order policies of such systems one may reduce outdating and shortages by issuing the products in a sophisticated way. We present therefore a stochastic model that is solved by stochastic dynamic programming.
KeywordsShelf Life Action Space Inventory Management Average Cost Blood Bank
Unable to display preview. Download preview PDF.
- 2.Haijema, R.: Solving large structured markov decision problems for perishable inventory management and traffic control, Ph.D. thesis, Univeristy of Amsterdam - Tinbergen Institute - Amsterdam School of Economics, 12 (2008)Google Scholar
- 3.Haijema, R.: A new class of stock level dependent ordering policies for perishables with a short maximum shelf life. International Journal of Production Economics (2011); doi:10.1016/j.ijpe.2011.05.021Google Scholar
- 6.Karaesmen, I., Scheller-Wolf, A., Deniz, B.: Planning production and inventories in the extended enterprise. In: Managing Perishable and Aging Inventories: Review and Future Research Directions. International Series in Operations Research & Management Science. ch. 15, vol. 151, pp. 393–436. Springer, Heidelberg (2011)Google Scholar
- 7.Pierskalla, W.P.: Operations research and health care, a handbook of methods and applications. In: Supply Chain Management of Blood Banks, pp. 104–145. Kluwer Academic Publishers, New York (2004)Google Scholar
- 8.Puterman, M.L.: Markov decision processes: Discrete stochastic dynamic programming. Wiley Series in Probability and Mathematical Statistics (1994)Google Scholar
- 12.van Zyl, G.J.J.: Inventory control for perishable commodities, unpublished Ph.D. dissertation, University of North Carolina (1964)Google Scholar
- 13.Veinott Jr., A.F.: Optimal ordering, issuing, and disposal of inventory with known demand, unpublished Ph.D. dissertation, Columbia University (1960)Google Scholar