Research on Multi-Echelon Inventory Optimization for Fresh Products in Supply Chains

Yingying Zhang,Le Ma,Yi Chai

doi:10.3390/su13116309

Abstract

Fresh products are perishable and fragile, which easily leads to higher inventory costs and requires reasonable planning of inventory management. Therefore, it is very important for fresh product supply chain systems to have multi-echelon inventory control. However, in past studies, few control models of the multi-echelon inventory considered the deterioration rate of perishable products as the variable factor. In this paper, on the basis of considering the perishable characteristics of fresh products, combining the deterioration rate with the inventory control model, a multi-echelon inventory control model for fresh products is designed and optimized, and the optimal solution from the whole supply chain is obtained through the optimal fitness function by genetic algorithm. Finally, Flexsim is used to simulate the two inventory strategies before and after optimization. After simulation comparison and analysis, it is verified that the optimized inventory control strategy has lower costs. The research results can help supply chain managers of fresh products to make inventory management decisions and save costs, which is of practical significance.

Highlights

Fresh products are perishable and fragile, which leads to higher inventory costs and requires reasonable planning of inventory management
In order to verify the feasibility of strategies using genetic algorithms in the mathematical model, the simulation model was performed 20 times for the two strategies
We used the principle of inventory control model, combined with the influence of perishable product deterioration, and established a multi-echelon inventory mathematical model to assist fresh product inventory decisions

Summary

Introduction

Fresh products are perishable and fragile, which leads to higher inventory costs and requires reasonable planning of inventory management. It is very important for fresh product supply chain systems to have multi-echelon inventory control. On the basis of considering the perishable characteristics of fresh products, combining the deterioration rate with the inventory control model, a multi-echelon inventory control model for fresh products is designed and optimized, and the optimal solution from the whole supply chain is obtained through the optimal fitness function by genetic algorithm. Because inventory controls are more complex and difficult, it is significant to study the control strategy for fresh products with multi-echelon inventory management. The shelf life loss during transportation and storage was predicted through the microbial growth model and evaluated using a mixed discrete event chain simulation model with continuous mass attenuation [4]

Methods

Results

Conclusion