Managing Perishable Inventory Systems With Multiple Demand Classes PDF Download
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| Author | : Hossein Abouee Mehrizi |
| Publisher | : |
| Total Pages | : 42 |
| Release | : 2018 |
| Genre | : |
| ISBN | : |
Download Managing Perishable Inventory Systems with Multiple Demand Classes Book in PDF, ePub and Kindle
In this paper, we study a multi-period stochastic perishable inventory system with multiple demand classes that require products of different ages. The firm orders the product with a positive leadtime and sells it to multiple demand classes, each only accepting products with remaining lifetime longer than a threshold. In each period, after demand realization, the firm decides how to allocate the on-hand inventory to different demand classes with different backorder or lost-sale cost. At the end of each period, the firm can dispose inventory of any age. We formulate this problem as a Markov decision process and characterize the optimal ordering, allocation, and disposal policies. When unfulfilled demand is backlogged, we show that the optimal order quantity is decreasing in the inventory levels and is more sensitive to the inventory level of fresher products, the optimal allocation policy is a sequential rationing policy, and the optimal disposal policy is characterized by a set of thresholds. For the lost-sale case, we show that the optimal allocation and disposal policies have the same structure but the optimal ordering policy may be different. Based on the structure of the optimal policy, we develop an efficient heuristic that is at most 4% away from the optimal cost in our numerical examples. Using numerical studies, we show that the ordering and allocation policies are close to optimal even if the firm cannot intentionally dispose products. Moreover, ignoring the difference between demand classes and using a simple allocation policy (e.g., FIFO) can significantly increase the total cost. We examine how the firm can improve the control of perishable items and show that the benefit of decreasing the leadtime is more significant than that of increasing the lifetime of the products or that of decreasing the acceptance threshold of the demand. The analysis is extended to systems with age dependent disposal cost and stochastic supply.
| Author | : Shouchang Chen |
| Publisher | : |
| Total Pages | : 62 |
| Release | : 2020 |
| Genre | : |
| ISBN | : |
Download Managing Perishable Inventory Systems With Age-Differentiated Demand Book in PDF, ePub and Kindle
We consider a periodic-review perishable inventory system with multiple demand classes, each characterized by a different lost-sales cost and a least freshness requirement. Demands of different classes in the same period can be correlated, while demands across periods are independent but not necessarily identical. In each period, the firm jointly makes the decisions regarding inventory issuing, rationing, production/ordering, and disposal. The objective is to minimize the total discounted expected cost over the entire planning horizon including linear ordering cost, inventory holding/lost-sales cost, expiration cost and disposal cost. By establishing new properties of multimodularity, we are able to explore some monotonicity and bounded sensitivity properties of the optimal policies and show that the optimal inventory issuing policy follows the first-in-first-out (FIFO) rule. The optimality analysis enables us to propose a novel heuristic, called adaptive approximation approach, which can be recursively calculated through a single-dimension dynamic program. Numerical studies demonstrate that our proposed approximation approach is nearly optimal with the average optimality gap 0.30% and significantly outperforms existing heuristics studied in the literature. Another important observation from numerical studies is that ignoring customers' freshness requirements can lead to a significant increase in total costs. Our heuristic idea can also be applied to the setting with the last-in-first-out (LIFO) issuing rule and still performs rather well.
| Author | : Bryan L. Deuermeyer |
| Publisher | : |
| Total Pages | : 31 |
| Release | : 1977 |
| Genre | : Inventory control |
| ISBN | : |
Download On Multi-product Perishable Inventory Systems with Dependent Demands Book in PDF, ePub and Kindle
| Author | : Steven Nahmias |
| Publisher | : Springer Science & Business Media |
| Total Pages | : 89 |
| Release | : 2011-05-17 |
| Genre | : Business & Economics |
| ISBN | : 1441979999 |
Download Perishable Inventory Systems Book in PDF, ePub and Kindle
A perishable item is one that has constant utility up until an expiration date (which may be known or uncertain), at which point the utility drops to zero. This includes many types of packaged foods such as milk, cheese, processed meats, and canned goods. It also includes virtually all pharmaceuticals and photographic film, as well as whole blood supplies. This book is the first devoted solely to perishable inventory systems. The book’s ten chapters first cover the preliminaries of periodic review versus continuous review and look at a one-period newsvendor perishable inventory model. The author moves to the basic multiperiod dynamic model, and then considers the extensions of random lifetime, inclusion of a set-up cost, and multiproduct models of perishables. A chapter on continuous review models looks at one-for-one policies, models with zero lead time, optimal policies with positive lead time, and an alternative approach. Additional chapters present material on approximate order policies, inventory depletion management, and deterministic models, including the basic EOQ model with perishability and the dynamic deterministic model with perishability. Finally, chapters explore decaying inventories, queues with impatient customers, and blood bank inventory control. Anyone researching perishable inventory systems will find much to work with here. Practitioners and consultants will also now have a single well-referenced source of up-to-date information to work with.
| Author | : Jing-Sheng J. Song |
| Publisher | : Edward Elgar Publishing |
| Total Pages | : 565 |
| Release | : 2023-08-14 |
| Genre | : Technology & Engineering |
| ISBN | : 180037710X |
Download Research Handbook on Inventory Management Book in PDF, ePub and Kindle
This comprehensive Handbook provides an overview of state-of-the-art research on quantitative models for inventory management. Despite over half a century’s progress, inventory management remains a challenge, as evidenced by the recent Covid-19 pandemic. With an expanse of world-renowned inventory scholars from major international research universities, this Handbook explores key areas including mathematical modelling, the interplay of inventory decisions and other business decisions and the unique challenges posed to multiple industries.
| Author | : Hailun Zhang |
| Publisher | : |
| Total Pages | : 0 |
| Release | : 2018 |
| Genre | : |
| ISBN | : |
Download Managing Perishable Inventory Systems as Non-Perishable Ones Book in PDF, ePub and Kindle
Perishable inventory problems have a long history and involve two fundamental decisions, how much to order and how much old inventory to clear before expiration, that are known to be difficult to optimize due to the curse of dimensionality. Most early work ignores the clearance decision and focuses solely on the ordering decision until recently where heuristic clearance policies have been developed. In this paper, we approach the problem from a different angle by exploring its asymptotic behavior, i.e., perishability can be ignored in many cases and hence clearance of inventory is not necessary except at the beginning of the planning horizon when a system is large enough. Inspired by such asymptotic behavior, we examine simple policies that ignore clearance under minor conditions and establish theoretical bounds for them. The bounds not only vanish asymptotically, but also indicate a system size required to guarantee any given optimality gap. Numerical studies suggest that such policies can work very well for systems with reasonable sizes and practical management of complex perishable inventory systems is not so much harder than that of non-perishable ones.
| Author | : R. S. Saxena |
| Publisher | : Global India Publications |
| Total Pages | : 322 |
| Release | : 2009-12 |
| Genre | : Business logistics |
| ISBN | : 9789380228211 |
Download INVENTORY MANAGEMENT: Controlling in a Fluctuating Demand Environment Book in PDF, ePub and Kindle
This book is for the inventory control practitioner.WIth the techniques described many people have been able to manage their stock of inventory so that their customers are happier and so are the accountants. The reduction of inventory value, the avoidance of unnecessary work and the improvement of customer service can be accomplished at the sam time through simple application of the techniques discussed. Inventory practitioners should be able to use this book to understand the best approaches and then to apply them to their own circumstances. Simple application of the methods is most succesful, while modifications usually result in less effective outcomes.
| Author | : Can Zhang |
| Publisher | : |
| Total Pages | : 59 |
| Release | : 2019 |
| Genre | : |
| ISBN | : |
Download 2-Approximation Policies for Perishable Inventory Systems when FIFO Is an Optimal Issuing Policy Book in PDF, ePub and Kindle
Motivated by a platelet inventory management problem, we study periodic-review, fixed-lifetime perishable inventory systems where demand is a general stochastic process. The optimal solution for this problem is computationally intractable due to the “curse of dimensionality”. In this paper, we first present an approximation policy that we call the marginal-cost dual-balancing policy for perishable inventory systems. We prove that when first-in-first-out (FIFO) is an optimal issuing policy, our proposed policy admits a constant worst-case performance bound of two, a tighter performance bound compared to the existing results presented in the perishable inventory literature. We then extend the literature on the optimality of the FIFO issuing policy and present new sufficient conditions to ensure the optimality of FIFO. Further, we present a tight example to show that the performance bound of two of the balancing policy can be achieved asymptotically when the unit shortage penalty goes to infinity (in which case the balancing policy tends to under-order). Motivated by this result, we anticipate that the balancing policy as well as other existing balancing-type policies presented in the literature may perform poorly when the unit shortage penalty becomes large (these policies all tend to under-order), and we present a new policy that we call the truncated-balancing policy to overcome this shortcoming. By combining our worst-case analysis ideas for the balancing policy with a structural property called L-natural-convexity, we prove that the truncated-balancing policy also has a worst-case performance guarantee of two when FIFO is an optimal issuing policy. Finally, we conduct extensive numerical analyses and show that the truncated-balancing policy has a significant performance improvement over the existing policies when the unit shortage penalty becomes (reasonably) large.
| Author | : M. (Myron) Hlynka |
| Publisher | : Ann Arbor, Mich. : University Microfilms International |
| Total Pages | : 176 |
| Release | : 1985 |
| Genre | : |
| ISBN | : |
Download Optimality for a Class of Perishable Inventory Policies Under Stochastic Demand [microform] Book in PDF, ePub and Kindle
| Author | : Stephen C. Graves |
| Publisher | : |
| Total Pages | : 25 |
| Release | : 1978 |
| Genre | : Inventory control |
| ISBN | : |
Download Simple Analytical Models for Perishable Inventory Systems Book in PDF, ePub and Kindle
This paper develops three distinct models for studying perishable inventory systems. The perishable items have a deterministic usable life after which they must be outdated. For each of the models, analytical expressions are found for steady-state distributions which characterize the inventory systems. Knowledge of this steady-state behavior may be used for evaluation of system performance, and for consideration of alternatives for improving system performance. The first model considered assumes that both the demand process and the inventory replenishment process are stochastic processes that may be modelled as Poisson processes. The second and third model assume that inventory is replenished by a constant production process. The second model, assuming continuous inventory units, has Poisson demand requests with the size of each request distributed as an exponential random variable. The third model has Poisson demand requests with all demands being for a single unit. (Author).
