Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/1040
Title: Analysis of postponement strategy for perishable items by EOQ-based models
Authors: Li, Jian
Cheng, T. C. Edwin
Wang, Shouyang
Subjects: Postponement strategy
Economic-order-quantity model (EOQ)
Perishable items
Inventory management
Issue Date: May-2007
Publisher: Elsevier
Source: International journal of production economics, May 2007, v. 107, no. 1, p. 31-38.
Abstract: This paper develops economic-order-quantity model (EOQ)-based models with perishable items to evaluate the impact of a form postponement strategy on the retailer in a supply chain. We formulate models for a postponement system and an independent system to minimize the total average cost function per unit time for ordering and keeping n perishable end-products. An algorithm is given to derive the optimal solutions of the proposed models. The impact of the deterioration rate on the inventory replenishment policies is studied with the help of theoretical analysis and numerical examples. Our theoretical analysis and computational results show that a postponement strategy for perishable items can give a lower total average cost under certain circumstances.
Rights: International Journal of Production Economics © 2006 Elsevier B.V. The journal web site is located at http://www.sciencedirect.com.
Type: Journal/Magazine Article
URI: http://hdl.handle.net/10397/1040
DOI: 10.1016/j.ijpe.2006.01.007
ISSN: 0925-5273
Appears in Collections:LMS Journal/Magazine Articles

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