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942. Optimizing Inventory Strategies for Perishable Products: A Comprehensive Model Integrating Freshness Dynamics and Economic Value

Invited abstract in session WC-61: Retail Inventory Management III, stream Retail Operations.

Wednesday, 12:30-14:00
Room: S10 (building: 101)

Authors (first author is the speaker)

1. Matan Shnaiderman
Management, Bar-Ilan University
2. Yael Lahav
Management, School of Industrial Engineering & Management, Bar-Ilan University and Shenkar College
3. Elad Harison
Shenkar College of Design and Engineering
4. Jacob kobe Harush

Abstract

Perishable products are characterized by a predetermined expiration date, beyond which their economic value declines, rendering them unusable. This paper identifies two categories of perishable products: those consumable before expiration but hazardous post-expiry (e.g., medical products), and those with freshness degradation over time, becoming unusable after their shelf life (e.g., agricultural products). Despite these distinctions, both types may be treated collectively due to their shared limited shelf life, impacting their marketability. The study introduces a model where a retailer manages the demand for a perishable product, considering its freshness level and selling price as multiplicative components. Further, the paper explores how decisions related to quantity optimization and profit maximization influence the order quantity. The model facilitates retailers in determining the optimal inventory level to maximize their profits.

Keywords

Status: accepted

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