A Review and Reflection on Inventory Management of Perishable Products in a Single-echelon Model

This paper reviews research on single-echelon inventory management of perishable products using the continuous review model. A steady progression of research in this area has included of a range of parameters and is reachinga saturation point where models appear effective and cover a range of realis...

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Main Authors: Duong, L., Wood, Lincoln, Wang, W.
Format: Journal Article
Published: Inderscience 2018
Online Access:http://hdl.handle.net/20.500.11937/22971
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author Duong, L.
Wood, Lincoln
Wang, W.
author_facet Duong, L.
Wood, Lincoln
Wang, W.
author_sort Duong, L.
building Curtin Institutional Repository
collection Online Access
description This paper reviews research on single-echelon inventory management of perishable products using the continuous review model. A steady progression of research in this area has included of a range of parameters and is reachinga saturation point where models appear effective and cover a range of realistic situations for single-echelon management.However, research has rested on the assumption that a total cost or profit metric should be used when answering the replenishment questions of when and how much to order. This total cost/profit metric is less appropriate when considering a holistic or systemic modelling of the company where the balancein measurements between departments and the continuous improvement are priority. From this perspective, we outline concerns with existing approaches using a total cost/profit metric when applied to a company. Instead of using approximation methods to optimize total costs/profits in a single department, we assert that managers should focus on multi-metric performance measures to improve system-wide results.In this paper, we present a method to compare the single-echelon replenishment model using multi-metric performance measures and those with the traditional total cost/profit metric.
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spelling curtin-20.500.11937-229712018-03-26T02:11:26Z A Review and Reflection on Inventory Management of Perishable Products in a Single-echelon Model Duong, L. Wood, Lincoln Wang, W. This paper reviews research on single-echelon inventory management of perishable products using the continuous review model. A steady progression of research in this area has included of a range of parameters and is reachinga saturation point where models appear effective and cover a range of realistic situations for single-echelon management.However, research has rested on the assumption that a total cost or profit metric should be used when answering the replenishment questions of when and how much to order. This total cost/profit metric is less appropriate when considering a holistic or systemic modelling of the company where the balancein measurements between departments and the continuous improvement are priority. From this perspective, we outline concerns with existing approaches using a total cost/profit metric when applied to a company. Instead of using approximation methods to optimize total costs/profits in a single department, we assert that managers should focus on multi-metric performance measures to improve system-wide results.In this paper, we present a method to compare the single-echelon replenishment model using multi-metric performance measures and those with the traditional total cost/profit metric. 2018 Journal Article http://hdl.handle.net/20.500.11937/22971 10.1504/IJOR.2018.089734 Inderscience fulltext
spellingShingle Duong, L.
Wood, Lincoln
Wang, W.
A Review and Reflection on Inventory Management of Perishable Products in a Single-echelon Model
title A Review and Reflection on Inventory Management of Perishable Products in a Single-echelon Model
title_full A Review and Reflection on Inventory Management of Perishable Products in a Single-echelon Model
title_fullStr A Review and Reflection on Inventory Management of Perishable Products in a Single-echelon Model
title_full_unstemmed A Review and Reflection on Inventory Management of Perishable Products in a Single-echelon Model
title_short A Review and Reflection on Inventory Management of Perishable Products in a Single-echelon Model
title_sort review and reflection on inventory management of perishable products in a single-echelon model
url http://hdl.handle.net/20.500.11937/22971