A Production Inventory Routing Planning for Perishable Food with Quality Consideration

Yantong Li · Feng Chu · Zhen Yang · Roberto Wolfler Calvo

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Supply Chain and Inventory Management Vehicle Routing Optimization Methods Optimization and Mathematical Programming

Abstract

We formulate the production inventory routing planning with an integrated mixed integer linear programming (MILP) model where the food quality level is explicitly traced throughout the supply chain. The objective of the proposed model is to maximize the total profit, which equals the selling revenue minus the summation of the production, inventory and transportation cost. We then use illustrative examples to show the effectiveness of the model and to investigate the impact of perishability. Analyses based on the computational results of a set of randomly generated instances are given.

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References

2001Recent trends in modeling of deteriorating inventory 1982Perishable Inventory Theory: A Review 1963A model for an exponentially decaying inventory 2009An optimization approach for managing fresh food quality throughout the supply chain 2012Review of inventory systems with deterioration since 2001 2014Optimal joint replenishment, delivery and inventory management policies for perishable products 2011Managing perishability in production-distribution planning: a discussion and review 2003An integrated multi-lot-size production inventory model for deteriorating item

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