Replenishment Policies for Deteriorating Items with Ramp Type Demand and a Fixed Shelf-Life under Shortage

Abstract

This study proposes a single-supplier, singleretailer inventory and pricing strategies for deteriorating items with ramp type demand and a fixed shelf-life under shortage. In practice, there are many commodity such as food, medication exist the shelf life. Therefore the shelf life expiration date has become an important research topic in inventory management. We will discuss three cases. We assume that the inventory objective is to minimize the total cost per unit time of the system. By using the subroutine FindRoot in commercial software Mathematica 5.2, we obtain the optimal solutions Index Terms-Ramp Type Demand Rate; Deteriorating Items; Backlogging I.

Inventory Model with Fixed Shelf Life under Generalized Non-Increasing Demand

“…We list comparisons among our new model and those existing systems to illustrate our contribution to the academic society (Table 1). Aiello et al [20] Avinadav [34] Avinadav and Arponen [13] Avinadav et al [14] Avinadav et al [18] Avinadav et al [27] Bhuiya et al [40] Chernonog [35] Chernonog andAvinadav [31] Chuang and Lin [21] De Giovanni [9] Demirag [28] Ganguly et al [41] Gładysz et al [7] Hanukov et al [32] Hanukov et al [36] Herbon [19] Hota et al [42] Khan et al [43] Kim et al [44] Krommyda et al [37] Lee et al [3] Leśniewski and Bartoszewicz [15] Lin et al [11] Ma [22] Malik and Sarkar [10] Mishra et al [45] Muriana [23] Muriana [25] Muriana [29] Muriana [38] Orynycz et al [8] Sarkar et al [1] Sharma et al [30] Taleizadeh et al [46] Yang et al [12] Zimpel-Leal and Lettice [4] Sarkar [47] Sarkar [48] Sepehri et al [49] This study Abbreviations for the first row: S1: Sustainable; B: Backordering; L: Lean management; S2: Supply chain; P1: Pricing; S3: Shelf-life; W: Waste management; P2: Perishable.…”

“…Aiello et al [20] developed a food supply chain for food recovery policies to find the optimal time to remove perishable items from the shelves and then decided to the livestock market or donated organizations. Chuang and Lin [21] studied a two-echelon inventory model with a supplier and one retailer to decide the optimal solutions for selling price under a fixed shelf-life and a ramp type demand with shortages. Ma [22] analyzed the maximization of profit for fresh products with two quality levels by a consumer utility function to solve the optimal solutions for ordering quantity and selling price.…”