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A Simulation-based Optimisation Approach for Inventory Management of Highly Perishable Food

Xue, Ning; Landa-Silva, Dario; Figueredo, Grazziela; Triguero, Isaac

Authors

Ning Xue



Abstract

The taste and freshness of perishable foods decrease dramatically with time. Effective inventory management requires understanding of market demand as well as balancing customers needs and references with products’ shelf life. The objective is to avoid food overproduction as this leads to waste and value loss. In addition, product depletion has to be minimised, as it can result in customers reneging. This study tackles the production planning of highly perishable foods (such as freshly prepared dishes, sandwiches and desserts with shelf life varying from 6 to 12 hours), in an environment with highly variable customers demand. In the scenario considered here, the planning horizon is longer than the products’ shelf life. Therefore, food needs to be replenished several times at different intervals. Furthermore, customers demand varies significantly during the planning period. We tackle the problem by combining discrete-event simulation and particle swarm optimisation (PSO). The simulation model focuses on the behaviour of the system as parameters (i.e. replenishment time and quantity) change. PSO is employed to determine the best combination of parameter values for the simulations. The effectiveness of the proposed approach is applied to some real-world scenario corresponding to a local food shop. Experimental results show that the proposed methodology combining discrete event simulation and particle swarm optimisation is effective for inventory management of highly perishable foods with variable customers demand.

Citation

Xue, N., Landa-Silva, D., Figueredo, G., & Triguero, I. (2019). A Simulation-based Optimisation Approach for Inventory Management of Highly Perishable Food. In Proceedings of the 8th International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES, 406-413. doi:10.5220/0007401304060413

Conference Name 8th International Conference on Operations Research and Enterprise Systems
Start Date Feb 19, 2019
End Date Feb 21, 2019
Acceptance Date Dec 13, 2018
Publication Date Mar 1, 2019
Deposit Date May 22, 2019
Volume 1
Pages 406-413
Book Title Proceedings of the 8th International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES
ISBN 9789897583520
DOI https://doi.org/10.5220/0007401304060413
Public URL https://nottingham-repository.worktribe.com/output/2066996
Publisher URL https://www.scitepress.org/PublicationsDetail.aspx?ID=t9gPyQhqVIQ=&t=1
Related Public URLs ww.icores.org/?y=2019
Additional Information This contribution was presented at ICORES 2019.