Modelling and analysis of inventory replenishment for perishable agricultural products with buyer-seller collaboration

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

24 Scopus Citations
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Author(s)

  • Dongjie Shen
  • K. K. Lai
  • Stephen C.H. Leung
  • Liang Liang

Related Research Unit(s)

Detail(s)

Original languageEnglish
Pages (from-to)1207-1217
Journal / PublicationInternational Journal of Systems Science
Volume42
Issue number7
Publication statusPublished - Jul 2011

Abstract

In this article, we study the inventory replenishment model for perishable agricultural products in a simple two-level supply chain. Collaborative forecasting is introduced into the inventory replenishment decisions to avoid overstocking and understocking of agricultural products, and to maximise profits. We analyse the model with ordering cost, holding cost, shortage cost, deterioration cost and opportunity lost cost of perishable agricultural products. Extensive numerical analysis is carried out to study the performance of the inventory policy. The optimal replenishment policy that minimises the total cost can be obtained from the model. It has demonstrated that the supply chain cost decreases with supplier and retailer's collaborative forecasting. © 2011 Taylor & Francis.

Research Area(s)

  • collaborative forecasting, inventory replenishment, perishable agricultural products

Citation Format(s)