A heuristic method for perishable inventory management under non-stationary demand

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dc.check.date2027-01-07en
dc.check.infoAccess to this article is restricted until 24 months after publication by request of the publisheren
dc.contributor.authorGulecyuz, Suheylen
dc.contributor.authorO’Sullivan, Barryen
dc.contributor.authorTarim, S. Armaganen
dc.contributor.funderScience Foundation Irelanden
dc.date.accessioned2025-01-27T15:16:33Z
dc.date.available2025-01-27T15:16:33Z
dc.date.issued2025-01-07en
dc.description.abstractOur study considers a perishable inventory system under a finite planning horizon, periodic review, non-stationary stochastic demand, zero lead time, FIFO (first in, first out) issuing policy, and a fixed shelf life. The inventory system has a fixed setup cost and linear ordering, holding, penalty, and outdating costs per item. We introduce a computationally-efficient heuristic which formulates the problem as a network graph, and then calculates the shortest path in a recursive way and by keeping the average total cost per period at minimum. The heuristic firstly determines the replenishment periods and cycles using the deterministic-equivalent shortest path approach. Taking the replenishment plan constructed in the first step as an input, it calculates the order quantities with respect to the observed inventory states as a second step. We conduct numerical experiments for various scenarios and parameters, and compare them to the optimal stochastic dynamic programming (SDP) results. Our experiments conclude that the computation time is reduced significantly, and the average optimality gap between the expected total cost and the optimal cost is 1.87%.en
dc.description.sponsorshipScience Foundation Ireland (12/RC/2289-P2)en
dc.description.statusPeer revieweden
dc.description.versionAccepted Versionen
dc.format.mimetypeapplication/pdfen
dc.identifier.articleid103267en
dc.identifier.citationGulecyuz, S., O’Sullivan, B. and Tarim, S. A. (2024) 'A heuristic method for perishable inventory management under non-stationary demand', Omega, 133, 103267 (17pp). https://doi.org/10.1016/j.omega.2024.103267en
dc.identifier.doihttps://doi.org/10.1016/j.omega.2024.103267en
dc.identifier.endpage17en
dc.identifier.issn0305-0483en
dc.identifier.journaltitleOmegaen
dc.identifier.startpage1en
dc.identifier.urihttps://hdl.handle.net/10468/16900
dc.identifier.volume133en
dc.language.isoenen
dc.publisherElsevier Ltd.en
dc.relation.ispartofOmegaen
dc.rights© 2025, Elsevier Ltd. All rights are reserved, including those for text and data mining, AI training, and similar technologies.en
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/en
dc.subjectInventory controlen
dc.subjectLot sizingen
dc.subjectPerishabilityen
dc.subjectFinite-horizon total costen
dc.subjectNon-stationary stochastic demanden
dc.subjectReplenishment cycle policyen
dc.titleA heuristic method for perishable inventory management under non-stationary demanden
dc.typeArticle (peer-reviewed)en
oaire.citation.volume133en
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