Articlegreen2007

A Model for Fresh Produce Shelf-Space Allocation and Inventory Management with Freshness-Condition-Dependent Demand

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Supply Chain and Inventory Management Optimization and Mathematical Programming Facility Location and Emergency Management

Abstract

Asignificant amount of work has investigated inventory control problems associated with fresh produce. Much of this work has considered deteriorating inventory control with many models having been proposed for various situations. However, no researchers have specifically studied fresh produce, which has its own special characteristics. Most research categorizes fresh produce into more general deteriorating categories with random lifetimes and nondecaying utilities. However, this classification is not reasonable or practical because the freshness of an item usually plays an important role in influencing the demand for the produce. In this paper, a single-period inventory and shelf-space allocation model is proposed for fresh produce. These items usually have a very short lifetime. The demand rate is assumed to be deterministic and dependent on both the displayed inventory (the number of facings of items on the shelves) and the items' freshness condition (which decreases over time). Several problem instances of different sizes are provided and solved by a modified generalized reduced gradient algorithm.

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References

2001Recent trends in modeling of deteriorating inventory 1982Perishable Inventory Theory: A Review 1991Survey of Literature on Continuously Deteriorating Inventory Models 1996Optimal Pricing and Lot-Sizing Under Conditions of Perishability and Partial Backordering 1981A Model for Optimizing Retail Space Allocations 1989An Inventory Model for Deteriorating Items and Stock-dependent Consumption Rate 1972The Relationship between Shelf Space and Unit Sales in Supermarkets 1998An inventory-theoretic approach to product assortment and shelf-space allocation

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2017Inventory model for deteriorating items with freshness and price dependent demand: Optimal discounting and ordering policies 2013RFID and perishable inventory management with shelf-space and freshness dependent demand 2020Optimal lot-size and Price of Perishable Goods: A novel Game-Theoretic Model using Double Interval Grey Numbers 2016Inventory and shelf-space optimization for fresh produce with expiration date under freshness-and-stock-dependent demand rate 2019Optimal joint dynamic pricing, advertising and inventory control model for perishable items with psychic stock effect

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