Development of Inventory Model for Perishable Product with Dynamic Pricing

Teodosius Raditya Ananto; Nurhadi Sıswanto

doi:10.55549/epstem.1371747

Conference Paper

Development of Inventory Model for Perishable Product with Dynamic Pricing

Year 2023, Volume: 23, 372 - 380, 30.09.2023

Teodosius Raditya Ananto Nurhadi Sıswanto

https://doi.org/10.55549/epstem.1371747

Abstract

: Perishable products are products whose value decreases over time. Inventory management for perishable products is a challenge experienced by retailers. Problems arise when inventory costs increase due to a large amount of wasted or waste products. This research aims to maximize profit by providing policy recommendations for inventory procurement under dynamic pricing. This research optimization focuses on determining the optimal order size and reorder level. To solve this problem, a simulation model is created by considering changes in product prices as product quality decreases. The simulation method in this study is a discrete event simulation using simulation software. Events in this inventory simulation include the arrival of customers and the addition or reduction of inventory levels. The replenishment policy in this study is continuous reviews. Simulation scenarios were generated to obtain an optimum order size and reorder level. The best scenario is obtained from a combination of optimum order size and reorder level. An inventory simulation model was generated based on fruit inventory data at one of the major retailers in Indonesia.

Keywords

Perishable product , Inventory model , Dynamic pricing , Discrete event simulation

References

Buisman, M. E., Haijema, R., & Bloemhof-Ruwaard, J. M. (2019). Discounting and dynamic shelf life to reduce fresh food waste at retailers. International Journal of Production Economics, 209, 274-284.
Chaudhary, V., Kulshrestha, R., & Routroy, S. (2018). State-of-the-art literature review on inventory models for perishable products. Journal of Advances in Management Research, 15(3), 306-346.
Fauza, G., Amer, Y., & Lee, S. H. (2013). Model of an integrated procurement-production system for food products incorporating quality loss during storage time. Volume 75 IACSIT-Internal Association of Computer Science.

Year 2023, Volume: 23, 372 - 380, 30.09.2023

Teodosius Raditya Ananto Nurhadi Sıswanto

https://doi.org/10.55549/epstem.1371747

Abstract

References

Buisman, M. E., Haijema, R., & Bloemhof-Ruwaard, J. M. (2019). Discounting and dynamic shelf life to reduce fresh food waste at retailers. International Journal of Production Economics, 209, 274-284.
Chaudhary, V., Kulshrestha, R., & Routroy, S. (2018). State-of-the-art literature review on inventory models for perishable products. Journal of Advances in Management Research, 15(3), 306-346.
Fauza, G., Amer, Y., & Lee, S. H. (2013). Model of an integrated procurement-production system for food products incorporating quality loss during storage time. Volume 75 IACSIT-Internal Association of Computer Science.

There are 3 citations in total.

Details

Primary Language	English
Subjects	Environmental and Sustainable Processes
Journal Section	Articles
Authors	Teodosius Raditya Ananto Nurhadi Sıswanto
Early Pub Date	October 5, 2023
Publication Date	September 30, 2023
Published in Issue	Year 2023 Volume: 23

Cite

APA	Ananto, T. R., & Sıswanto, N. (2023). Development of Inventory Model for Perishable Product with Dynamic Pricing. The Eurasia Proceedings of Science Technology Engineering and Mathematics, 23, 372-380. https://doi.org/10.55549/epstem.1371747