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A model for fresh produce shelf-space allocation and inventory management with freshness-condition-dependent demand

Bai, Ruibin; Kendall, Graham

Authors

Ruibin Bai ruibin.bai@nottingham.edu.cn

Graham Kendall gxk@cs.nott.ac.uk

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.

Journal Article Type Article
Journal INFORMS Journal on Computing
Print ISSN 1091-9856
Electronic ISSN 1091-9856
Publisher INFORMS
Peer Reviewed Peer Reviewed
Volume 20
Issue 1
Institution Citation Bai, R., & Kendall, G. (in press). A model for fresh produce shelf-space allocation and inventory management with freshness-condition-dependent demand. INFORMS Journal on Computing, 20(1), doi:10.1287/ijoc.1070.0219
DOI https://doi.org/10.1287/ijoc.1070.0219
Keywords Inventory; Shelf-space allocation; Fresh produce; Optimization
Publisher URL https://doi.org/10.1287/ijoc.1070.0219
Copyright Statement Copyright information regarding this work can be found at the following address: http://eprints.nottingh.../end_user_agreement.pdf

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Copyright Statement
Copyright information regarding this work can be found at the following address: http://eprints.nottingham.ac.uk/end_user_agreement.pdf



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