Modeling Inventory System of Perishable Products under Supply Chain Environment

Abstract

Although there are a large number of researches on inventory control of supply chain, the majority of the literatures did not take account of productpsilas deterioration while studying inventory system of multi-stage supply chain. On basis of the previous literatures, this paper studies inventory control of perishable product in one-to-one supply chain, obtains optimal retailerpsilas inventory strategy on view of retailer or supply chain. Finally, this paper makes numerical analyses, which shows the following conclusions: retailerpsilas global optimization based on supply chain makes supply chain cost obviously decrease; with improvement of retailerpsilas service level, retailerpsilas cost increases rapidly, distributorpsilas cost declines slowly; when deterioration rate increases with higher speed, retailerpsilas inventory cost, distributorpsilas inventory cost and inventory cost of supply chain increase fast.