Development and simulation analysis of a new perishable inventory model with a closing days constraint under non-stationary stochastic demand

Janssen, Larissa; Sauer, Jürgen; Claus, Thorsten; Nehls, Uwe

doi:10.1016/j.cie.2018.02.016

Cited by 38 publications

(16 citation statements)

References 33 publications

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“…Wastes differ from financial measures as they are a physical outcome of the PIS policy. By quantifying waste production, a model can also be assessed for its sustainability [10], [11]. The minimization of waste, separate from its contributions to cost, is used as an objective in a number of studies [5].…”

Section: Perishable Inventory Systemsmentioning

confidence: 99%

“…FIFO was explicitly modeled for this case, as this is the standard for inventories in the healthcare service industry. [10] adapted a modeling and simulation analysis methodology determine the impact of a closing day constraint for the inventory of stores. The objective of the study was to determine if the existence of a closing day would lead to more aged inventory as closing day approach, as is the case in real grocery store inventories.…”

Section: Fifo and Lifo Issuance Policiesmentioning

confidence: 99%

“…This variable is only present in the perishables case, as inventory can only be accumulated in the case of non-perishables. The variable Wastes is a function of the residual PFGI and a given rate of deterioration: Wastes(t) = (PFGI(t) -Sold P. Inv(t)) / DelayP (10) For the cognition variables Perceived Demand and Perceived Quality, it was previously mentioned that the change could be positive or negative depending on the recent values of the perceived information. These changes are the flow variables Change in Perceived Demand (CIPD) and Change in Perceived Quality (CIPQ).…”

Section: Variables Definitionmentioning

confidence: 99%

“…The transition of inventories from a state of salability to wastes is another differentiating factor. The production of wastes affects system capacity [10], [11], and any wastes generated may incur disposal costs [11], [12]. In this case, perishability affects key system constraints and parameters.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Assessment of the Quality and Sustainability Implications of FIFO and LIFO Inventory Policies through System Dynamics

Ching¹,

Mutuc²,

Jose³

2019

Adv. sci. technol. eng. syst. j.

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Perishable inventory management contributes simultaneously to society and the economy, by reducing food wastage and capitalizing on the freshness of goods. For this reason, countless mathematical models have been developed for their effectiveness and costefficient management. Yet, the majority of these models can only optimize systems for a limited time frame, allowing for small gains in operations management, but failing to change the recurring patterns in inventory levels. System dynamics (SD) modelling shifts emphasizes these patterns and the recurring decisions that make them. Moreover, the framework has generated insight for other supply chain cases that could not have been derived from a short-term perspective. Thus, the current study now seeks to apply the SD framework in modelling perishable inventory systems, in designing policies that benefit the environment and the economy by reducing waste production and increasing the viability of goods reaching the customer. In particular, it evaluates the impact of opposing issuance policies (i.e. First-In-First-Out (FIFO) and Last-In-First-Out (LIFO)) on perishables to demonstrate the potential of SD in improving perishable inventory management. The simulated results share the sentiments of optimization models, that FIFO will ultimately generate less wastes and incur less material costs. Yet, the simulations also reveal implementing FIFO will result in larger fluctuations in inventory levels, which imply greater inconsistency in age-based quality. These suggest that LIFO would be preferable for quality-sensitive products, while FIFO would be preferable for cases sensitive to waste production. The current study demonstrates the efficiency of system dynamics in generating insight beyond that which can be derived from the existing mathematical models. Future studies may likewise extend this approach in the evaluation of policies on the use of technology in perishable inventory systems, which are the prevalent in present literature.

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Section: Perishable Inventory Systemsmentioning

confidence: 99%

Section: Fifo and Lifo Issuance Policiesmentioning

confidence: 99%

Section: Variables Definitionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Assessment of the Quality and Sustainability Implications of FIFO and LIFO Inventory Policies through System Dynamics

Ching¹,

Mutuc²,

Jose³

2019

Adv. sci. technol. eng. syst. j.

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“…Reducing Post Harvest Fish Losses is a major problem in many countries. This happens because of the difficulty in handling a standardized and relatively short lifetime of the perishable product (Janssen et al, 2018). According to Cheke and Ward (1998), every fish distribution system in the world almost certainly has some losses throughout the fish distribution process.…”

Section: Introductionmentioning

confidence: 99%

A Three-Phased Perishable Inventory Simulation Model with Quality Decrease Consideration

Ibrahim

Mardhiyyah

Rusdiansyah

et al. 2020

JITI

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In this article, focus on the simulation of a three-phase perishable product inventory system of a SMEs selling fresh and processed milkfish. This research was conducted to simulate a perishable product inventory system to understand and analyze the problems that occur then propose solutions to fix them. The simulation model was developed with ARENA software, simulation results of the existing condition show that there is 162 kg/month waste in fresh fish, 158 pcs/month in processed product A, and 86 pcs/month in processed product B. A model with a product renewal process mechanism was proposed to overcome this problem, and seven improvement scenarios were developed. The results obtained from the seventh improvement scenario revealed that there was a 100% reduction in fresh fish and processed product B and 94% in processed product A. Besides, there was a saving in need for fresh fish supply of 10 kg/day. In this article, we show how ARENA software can be adopted to simulate inventory system problems effectively. The method in this research can be applied to investigate various supply system scenarios and their consequences before implementing it in a real system.

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Impact of Internet of Things on Food Supply Chains

Hassini

Ben‐Daya²,

Bahroun³

2023

Smart and Sustainable Supply Chain and Logistics — Challenges, Methods and Best Practices

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Development and simulation analysis of a new perishable inventory model with a closing days constraint under non-stationary stochastic demand

Cited by 38 publications

References 33 publications

Assessment of the Quality and Sustainability Implications of FIFO and LIFO Inventory Policies through System Dynamics

Assessment of the Quality and Sustainability Implications of FIFO and LIFO Inventory Policies through System Dynamics

A Three-Phased Perishable Inventory Simulation Model with Quality Decrease Consideration

Impact of Internet of Things on Food Supply Chains

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