A stochastic micro-periodic age-based inventory replenishment policy for perishable goods

Abstract

In this paper, we propose a micro-periodic inventory replenishment policy for quickly perishable goods with fixed and known lifetime of items, deterministic lead time, fixed given order cycle, mixed issuing policies (FIFO and LIFO), age-based stock, imperfect items and target customer service level under random demand. The inventory policy is based on time of day (morning, midday, afternoon or evening). The results of our simulation study show that the proposed micro-periodic inventory policy leads to waste reduction of 66% as well as a partial decrease in cost compared to inventory policy with planning on a daily basis.