doi: 10.7763/IJIMT.2012.V3.235
Perishable Inventory Management and Dynamic Pricing using TTI Technologies
Avi Herbon1
,
Eugene Levner2 ,
Edwin Cheng3
- 1Department of Management, Bar Ilan University,Ramat Gan, Israel.
- 2School of Economics, Ashkelon Academic College,Ashkelon, Israel
- 3Department of Logistics and Maritime Studies, the Hong Kong Polytechnic University, Hong Kong.
Abstract
This work considers a computer simulation model for the inventory management of perishable products. Typical examples of such products are food, beverage, and pharmaceuticals. In order to keep track of the age and quality of such units in stock, time-temperature indicator (TTI) technologies can be used. The problem is to maximize the retailer's expected profit in the presence of TTIs with customers’ satisfaction being taken into account. The sensing technology and information given to customers is tested in three modes: (i) a basic mode where TTI is not available; (ii) a mode in which TTIs are connected to each item and on-line alerts are made whenever the item is damaged, and (iii) a case when TTIs have the ability to predict the real expiry date with some prediction error. The model is constructed for stochastic data. Results of the simulation are reported.
Keywords
- Perishable products
- inventory management
- dynamic pricing
- TTI technology applications
How to Cite
Avi Herbon, Eugene Levner, and Edwin Cheng, "Perishable Inventory Management and Dynamic Pricing using TTI Technologies," International Journal of Innovation, Management and Technology, vol. 3, no. 3, pp. 262-266, 2012. https://doi.org/10.7763/IJIMT.2012.V3.235
Copyright & License
Copyright © 2012 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).