Periodic review inventory-control for perishable products under service-level constraints

Stefan Minner, Sandra Transchel

Research output: Contribution to journalArticlepeer-review

89 Scopus citations

Abstract

Food retail inventory management faces major challenges by uncertain demand, perishability, and high customer service level requirements. In this paper, we present a method to determine dynamic order quantities for perishable products with limited shelf-life, positive lead time, FIFO or LIFO issuing policy, and multiple service level constraints. In a numerical study, we illustrate the superiority of the proposed method over commonly suggested order-up-to-policies. We show that a constant-order policy might provide good results under stationary demand, short shelf-life, and LIFO inventory depletion.

Original languageEnglish
Pages (from-to)979-996
Number of pages18
JournalOR Spectrum
Volume32
Issue number4
DOIs
StatePublished - 2010
Externally publishedYes

Keywords

  • Inventory
  • Perishable products
  • Service level

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