Optimal delivery and replenishment policies for perishable products considering lost sale cost: an efficient hybrid algorithm

Babagolzadeh, Mahla and Pirayesh, Mohammadali and Shrestha, Anup ORCID: https://orcid.org/0000-0002-2952-0072 (2019) Optimal delivery and replenishment policies for perishable products considering lost sale cost: an efficient hybrid algorithm. International Journal of Industrial and Systems Engineering. ISSN 1748-5037

Abstract

In today’s competitive global market, improving the quality of customer service and waste reduction are two important factors to maximise the profits of a system. These goals can be achieved throughout well-managed logistical operations such as proper inventory management and timely delivery of perishable items to customers. This paper presents an integrated mathematical model that schedules replenishment of a perishable product to determine delivery routes, truck loads and inventory levels, where the vehicle arrival time has a direct impact on the quantity of the product delivered to customers. Given the NP-hard nature of the problem, finding optimum or near optimum solutions in polynomial time is challenging, therefore a hybrid algorithm based on a linear programming model and a simulated annealing algorithm is developed to solve the problem efficiently. The proposed method achieves a solution near-optimal solution in an efficient computational time. Finally, an analysis is carried out to verify the effectiveness of the algorithm.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Published online: 2019. Permanent restricted access to ArticleFirst version, in accordance with the copyright policy of the publisher.
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Commerce (1 July 2013 -)
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Management and Enterprise (1 July 2013 -)
Date Deposited: 18 Dec 2019 03:12
Last Modified: 17 Jan 2020 03:24
Uncontrolled Keywords: inventory-routing problem; IRP; lost sale cost; hybrid algorithm; perishable product
Fields of Research : 09 Engineering > 0910 Manufacturing Engineering > 091010 Packaging, Storage and Transportation (excl. Food and Agricultural Products)
Socio-Economic Objective: E Expanding Knowledge > 97 Expanding Knowledge > 970109 Expanding Knowledge in Engineering
Identification Number or DOI: 10.1504/IJISE.2020.10024103
URI: http://eprints.usq.edu.au/id/eprint/37162

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