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.
Index Terms—Perishable products, inventory management,dynamic pricing, TTI technology applications.
A. Herbon is with the Department of Management, Bar Ilan University,Ramat Gan, Israel (e-mail:firstname.lastname@example.org).
E. Levner is with the School of Economics, Ashkelon Academic College,Ashkelon, Israel (e-mail:email@example.com)
E. Cheng is with the Department of Logistics and Maritime Studies, the Hong Kong Polytechnic University, Hong Kong (e-mail:Edwin.Cheng@inet.polyu.edu.hk).
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.