2023Unpublished venueRequires access

A study on joint inventory decision of fresh produce considering service constraint level constraint and controllable lead time

Lei Zhou, Xiaoli Ma, Fachao Li

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Abstract

The traditional inventory model takes minimizing the cost of a single inventory as the goal. However, there will be problems such as rising inventory costs and the bullwhip effect. To address these problems, this paper studies a fresh product inventory model from the perspective of joint inventory decisions of distribution centers and retailers. Under the constraints of random and normal distribution of retailer fresh product market demand in lead time, controllable lead time of distribution center, and corresponding service level, the joint inventory model is constructed with the goal of minimizing joint inventory costs and the order lot, lead time, reorder point and supply lot as decision variables. Finally, the reasonableness of the joint inventory model and the feasibility of the algorithm are verified by arithmetic examples.

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What this paper is about

The traditional inventory model takes minimizing the cost of a single inventory as the goal. However, there will be problems such as rising inventory costs and the bullwhip effect. To address these problems, this paper studies a fresh product inventory model from the perspective of joint inventory decisions of distribution centers and retailers. Under the constraints of random and normal distribution of retailer fresh product market demand in lead time, controllable lead time of distribution center, and corresponding service level, the joint inventory model is constructed with the goal of minimizing joint inventory costs and the order lot, lead time, reorder point and supply lot as decision variables. Finally, the reasonableness of the joint inventory model and the feasibility of the algorithm are verified by arithmetic examples.

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Available abstract

The traditional inventory model takes minimizing the cost of a single inventory as the goal. However, there will be problems such as rising inventory costs and the bullwhip effect. To address these problems, this paper studies a fresh product inventory model from the perspective of joint inventory decisions of distribution centers and retailers. Under the constraints of random and normal distribution of retailer fresh product market demand in lead time, controllable lead time of distribution center, and corresponding service level, the joint inventory model is constructed with the goal of minimizing joint inventory costs and the order lot, lead time, reorder point and supply lot as decision variables. Finally, the reasonableness of the joint inventory model and the feasibility of the algorithm are verified by arithmetic examples.

Key concepts: Lead time, Inventory theory, Reorder point, Service level, Constraint (computer-aided design), Operations research, Inventory control, Perpetual inventory

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