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Deteriorating products shipments planning improving

Rojkov M.

Research in Logistics & Production

2013

Vol. 3, No. 4

287--299

The wastage minimization problem of products with limited expiration date keeping required service level is studied. Short literature review is presented. Major approaches for deteriorating stock planning are listed. Some related researches are provided. The problem is stated considering industry specifics of non from concentrate juice production. The drawbacks of initial planning approach are shown. Some market conditions and business processes influencing supply chain performance are presented. The algorithm for wastage volume estimation is developed. It is shown that the shipments planning process paying attention to product limited shelf life may reduce the costs significantly, despite that in certain situations it may be better to consider product delisting. The safety stock level affects the system's performance indicators greatly, but is hard to calculate analytically. The vba-excel-based tool for the products shipment planning is developed, analyzed and implemented. The simulation model reflecting the planning tool logic is developed. Several simulation experiments are performed.