Abstract
The perishable products are goods that loss their values over time. If the products cannot be sold on time, the values of excess inventory might go to zero. Because of its features are limited in terms of shelf life, so inventory management is a major obstacle for the company. The entrepreneur should focus on creating an effective inventory management system. The projected demand of consumers precisely. This will affect the amount of the right product. Continuous review (Q, r) concept is to define a reorder point and order quantity. This will support policy under the assumption that demand is normally distributed fixed lifetime with positive lead time. In this paper, a mathematical model with continuous review (Q, r), used in determination of appropriate order quantity for the perishable inventory systems, is developed. The objective of this research is to find optimal ordering quantity, minimizing total costs. The modified Simulated Annealing (SA) is employed to find the optimal ordering quantity for perishable product inventory systems. The results indicated that the optimal ordering quantity is equal to 16.51, which is obtained from modified simulated annealing within 0.51 seconds. The expected total costs decreased 69.85 percent, when comparing with results obtained from EOQ model.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call