A review and reflection on inventory management of perishable products in a single-echelon model

Duong, Linh N. K.; Wood, Lincoln C.; Wang, William Y. C.

Abstract

This paper reviews research on single-echelon inventory management of perishable products using the continuous review model. A steady progression of research in this area has included of a range of parameters and is reaching a saturation point where models appear effective and cover a range of realistic situations for single-echelon management. However, research has rested on the assumption that a total cost or profit metric should be used when answering the replenishment questions of when and how much to order. This total cost/profit metric is less appropriate when considering a holistic or systemic modelling of the company where the balance in measurements between departments and the continuous improvement are priority. From this perspective, we outline concerns with existing approaches using a total cost/profit metric when applied to a company. Instead of using approximation methods to optimise total costs/profits in a single department, we assert that managers should focus on multi-metric performance measures to improve system-wide results. In this paper, we present a method to compare the single-echelon replenishment model using multi-metric performance measures and those with the traditional total cost/profit metric.

• Journal Article Type: Article
• Acceptance Date: May 2, 2015
• Online Publication Date: Jan 16, 2018
• Publication Date: 2018
• Deposit Date: Jul 23, 2021
• Journal: International Journal of Operational Research
• Print ISSN: 1745-7645
• Electronic ISSN: 1745-7653
• Publisher: Inderscience
• Peer Reviewed: Peer Reviewed
• Volume: 31
• Issue: 3
• Pages: 313-329
• DOI: https://doi.org/10.1504/IJOR.2018.089734
• Public URL: https://uwe-repository.worktribe.com/output/7487253
• Publisher URL: https://www.researchgate.net/profile/Lincoln_Wood/publication/281646215_A_review_and_reflection_on_inventory_management_of_perishable_products_in_a_single-_echelon_model/links/55f2a69808aef559dc493c8b.pdf