Developing and solving two-echelon inventory system for perishable items in a supply chain: case study (Mashhad Behrouz Company)

Authors

1 Dep. Of Industrial Management, Science and Research Branch, Islamic Azad University, Tehran, Iran

2 Dep. Of Industrial Engineering, University of Science and Technology, Tehran, Iran

3 Dep. Of Management, Mashhad Branch, Islamic Azad University, Mashhad, Iran

Abstract

In this research, a new two-echelon model has been presented to control the inventory of perishable goods. The
performance of the model lies in a supply chain and is based on real conditions and data. The main purpose of
the model is to minimize the maintenance cost of the entire chain. However, if the good is perished before
reaching the customer (the expiration date is over), the cost would be added to other costs such as transportation,
production, and maintenance costs in the target function. As real conditions are required, some limitations
such as production time, storage capacity, inventory level, transportation methods, and sustainability time are
considered in the model. Also, due to the complexity of the model, the solution approach is based on genetic
algorithm under MATLAB to solve and confirm the accuracy of the model’s performance. As can be noted, the
manipulation of parametric figures can solve the problem of reaching the optimum point. Using real data from a
food production facility, the model was utilized with the same approach and the obtained results confirm the
accuracy of the model.

Keywords