Optimal delivery and replenishment policies for perishable products considering lost sale cost: an efficient hybrid algorithm

Article

Babagolzadeh, Mahla, Pirayesh, Mohammadali and Shrestha, Anup. 2021. "Optimal delivery and replenishment policies for perishable products considering lost sale cost: an efficient hybrid algorithm." International Journal of Industrial and Systems Engineering. 37 (3), pp. 306-333. https://doi.org/10.1504/IJISE.2020.10024103
Article Title

Optimal delivery and replenishment policies for perishable products considering lost sale cost: an efficient hybrid algorithm

ERA Journal ID3757
Article CategoryArticle
AuthorsBabagolzadeh, Mahla (Author), Pirayesh, Mohammadali (Author) and Shrestha, Anup (Author)
Journal TitleInternational Journal of Industrial and Systems Engineering
Journal Citation37 (3), pp. 306-333
Number of Pages28
Year2021
Place of PublicationUnited Kingdom
ISSN1748-5037
1748-5045
Digital Object Identifier (DOI)https://doi.org/10.1504/IJISE.2020.10024103
Web Address (URL)https://www.inderscienceonline.com/doi/abs/10.1504/IJISE.2021.113442
Abstract

In today’s competitive global market, improving the quality of customer service and waste reduction are two important factors to maximise the profits of a system. These goals can be achieved throughout well-managed logistical operations such as proper inventory management and timely delivery of perishable items to customers. This paper presents an integrated mathematical model that schedules replenishment of a perishable product to determine delivery routes, truck loads and inventory levels, where the vehicle arrival time has a direct impact on the quantity of the product delivered to customers. Given the NP-hard nature of the problem, finding optimum or near optimum solutions in polynomial time is challenging, therefore a hybrid algorithm based on a linear programming model and a simulated annealing algorithm is developed to solve the problem efficiently. The proposed method achieves a solution near-optimal solution in an efficient computational time. Finally, an analysis is carried out to verify the effectiveness of the algorithm.

Keywordsinventory-routing problem; IRP; lost sale cost; hybrid algorithm; perishable product
ANZSRC Field of Research 2020401411. Packaging, storage and transportation (excl. food and agricultural products)
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Byline AffiliationsSchool of Commerce
Ferdowsi University of Mashhad, Iran
School of Management and Enterprise
Institution of OriginUniversity of Southern Queensland
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Cater-Steel, Aileen, Valverde, Raul, Shrestha, Anup and Toleman, Mark. 2016. "Decision support systems for IT service management." International Journal of Information and Decision Sciences. 8 (3), pp. 284-304. https://doi.org/10.1504/IJIDS.2016.078588
Innovative decision support for IT service management
Shrestha, Anup, Cater-Steel, Aileen and Toleman, Mark. 2016. "Innovative decision support for IT service management." Journal of Decision Systems. 25 (Supplement 1), pp. 486-499. https://doi.org/10.1080/12460125.2016.1187424
Evaluation of software mediated process assessments for IT service management
Shrestha, Anup, Cater-Steel, Aileen, Toleman, Mark and Rout, Terry. 2015. "Evaluation of software mediated process assessments for IT service management." Rout, Terry, O’Connor, Rory V. and Dorling, Alec (ed.) 15th International Conference on Software Process Improvement and Capability Determination (SPICE 2015). Gothenburg, Sweden 16 - 17 Jun 2015 Cham, Switzerland. https://doi.org/10.1007/978-3-319-19860-6_7
Software-mediated process assessment in IT service management
Cater-Steel, Aileen, Tan, Wui-Gee, Toleman, Mark, Rout, Terry and Shrestha, Anup. 2013. "Software-mediated process assessment in IT service management." Woronowicz, Tanja, Rout, Terry, O'Connor, Rory and Dorling, Alec (ed.) 13th International Conference on Software Process Improvement and Capability Determination (SPICE 2013). Bremen, Germany 04 - 06 Jun 2013 Berlin, Germany. https://doi.org/10.1007/978-3-642-38833-0_17
An empirical analysis of SNS users and their privacy and security awareness of risks associated with sharing SNS profiles (online identities)
Lane, Michael Steven and Shrestha, Anup. 2011. "An empirical analysis of SNS users and their privacy and security awareness of risks associated with sharing SNS profiles (online identities)." Rotchanakitumnuai, Siriluck and Kaewkitipong, Laddawan (ed.) 11th International Conference on Electronic Business: Borderless e-Business for the Next Decade (ICEB 2011). Bangkok, Thailand 28 Nov - 02 Dec 2011 Bangkok, Thailand.
A measurement model to link process operational measures to risks associated with attainment of business critical success factors
Behari, Suren, Cater-Steel, Aileen, Shrestha, Anup and Soar, Jeffrey. 2016. "A measurement model to link process operational measures to risks associated with attainment of business critical success factors." 6th International Engaged Management Scholarship Conference (EMS 2016). Paris, France 08 - 11 Sep 2016
Software-mediated process assessment for IT service capability management
Shrestha, Anup, Cater-Steel, Aileen, Tan, Wui-Gee and Toleman, Mark. 2014. "Software-mediated process assessment for IT service capability management." Avgerou, Chrisanthi and Te'eni, Dov (ed.) 22nd European Conference on Information Systems (ECIS 2014): Digital Work, Digital Life. Tel Aviv, Israel 09 - 11 Jun 2014 Tel Aviv, Israel.
How to communicate evaluation work in design science research? An exemplar case study
Shrestha, Anup, Cater-Steel, Aileen and Toleman, Mark. 2014. "How to communicate evaluation work in design science research? An exemplar case study." Tan, Felix and Bunker, Deborah (ed.) 25th Australasian Conference on Information Systems (ACIS 2014). Auckland, New Zealand 08 - 10 Dec 2014 Auckland, New Zealand.
A decision support tool to define scope in IT service management process assessment and improvement
Shrestha, Anup, Cater-Steel, Aileen, Toleman, Mark and Tan, Wui-Gee. 2013. "A decision support tool to define scope in IT service management process assessment and improvement." vom Brocke, Jan, Hekkala, Riitta, Ram, Sudha and Rossi, Matti (ed.) 8th International Conference on Design Science at the Intersection of Physical and Virtual Design (DESRIST 2013). Helsinki, Finland 11 - 12 Jun 2013 Germany. Springer. https://doi.org/10.1007/978-3-642-38827-9_21
Building a software tool for transparent and efficient process assessments in IT service management
Shrestha, Anup, Cater-Steel, Aileen, Toleman, Mark and Tan, Wui-Gee. 2014. "Building a software tool for transparent and efficient process assessments in IT service management." Tremblay, M. C., VanderMeer, D., Rothenberger, M., Gupta, A. and Yoon, V. (ed.) 9th International Conference on Design Science Research in Information Systems and Technologies (DESRIST 2014): Advancing the Impact of Design Science: Moving from Theory to Practice. Miami, United States 22 - 23 May 2014 Germany. Springer. https://doi.org/10.1007/978-3-319-06701-8_16
Virtualising process assessments to facilitate continual service improvement in IT service management
Shrestha, Anup, Cater-Steel, Aileen and Toleman, Mark. 2015. "Virtualising process assessments to facilitate continual service improvement in IT service management." 26th Australasian Conference on Information Systems (ACIS 2015). Adelaide, Australia 30 Nov - 04 Dec 2015 Adelaide, South Australia.
The issue of reliability in software mediated process assessments
Shrestha, Anup, Cater-Steel, Aileen, Toleman, Mark, Rout, Terry and Behari, Suren. 2016. "The issue of reliability in software mediated process assessments." Clarke, Paul M., O'Connor, Rory V., Rout, Terry and Dorling, Alec (ed.) Software Process Improvement and Capability Determination 16th International Conference, SPICE 2016. Dublin, Ireland 09 - 10 Jun 2016 Switzerland. https://doi.org/10.1007/978-3-319-38980-6_15
Towards transparent and efficient process assessments for IT service management
Shrestha, Anup, Cater-Steel, Aileen, Toleman, Mark and Rout, Terry. 2014. "Towards transparent and efficient process assessments for IT service management." Communications in Computer and Information Science. 477, pp. 165-176. https://doi.org/10.1007/978-3-319-13036-1_15
Consistent! Transparent! D.I.Y. ITSM process assessment approach
Shrestha, Anup and Kennedy, Graham. 2014. "Consistent! Transparent! D.I.Y. ITSM process assessment approach." iTSMF Australia Annual Conference (LEADit 2014): IT Service Management in a Connected World. Melbourne, Australia 13 - 15 Aug 2014 Melbourne, Australia.
A method to select IT service management processes for improvement
Shrestha, Anup, Cater-Steel, Aileen, Toleman, Mark and Tan, Wui-Gee. 2014. "A method to select IT service management processes for improvement." JITTA: an information systems journal. 15 (3), pp. 31-56.
Smart tools for IT service management: a review of two decision support system projects
Valverde, Raul, Cater-Steel, Aileen, Shrestha, Anup and Toleman, Mark. 2014. "Smart tools for IT service management: a review of two decision support system projects." Sharda, Ramesh and Sagarnaga, Jose (ed.) 4th International Conference on Engaged Management Scholarship (EDBA 2014): Bridging. Tulsa, United States 11 - 14 Sep 2014 Tulsa, OK. United States. https://doi.org/10.2139/ssrn.2553012
Development and evaluation of a software-mediated process assessment approach in IT service management
Shrestha, Anup. 2015. Development and evaluation of a software-mediated process assessment approach in IT service management. PhD Thesis Doctor of Philosophy. University of Southern Queensland.
A tool for IT service management process assessment for process improvement
Shrestha, Anup, Cater-Steel, Aileen, Tan, Wui-Gee, Toleman, Mark and Rout, Terry. 2013. "A tool for IT service management process assessment for process improvement." Heidrich, Jens, Oivo, Markku, Jedlitschka, Andreas and Baldassarre, Marie Teresa (ed.) 14th International Conference on Product-Focused Software Process Improvement (PROFES 2013). Paphos, Cyprus 12 - 14 Jun 2013 Berlin, Germany. Springer. https://doi.org/10.1007/978-3-642-39259-7_27
ITSM process assessments using ISO/IEC 15504 for CSI
Shrestha, Anup, Collins, Paul and Cater-Steel, Aileen. 2013. "ITSM process assessments using ISO/IEC 15504 for CSI." Informed Intelligence: ITSMF Australia Bulletin.
Efficient intrusion detection scheme based on SVM
Zhou, Guangping and Shrestha, Anup. 2013. "Efficient intrusion detection scheme based on SVM." Journal of Networks. 8 (9), pp. 2128-2134. https://doi.org/10.4304/jnw.8.9.2128-2134
Social ITSM - challenges and benefits
Shrestha, Anup. 2012. "Social ITSM - challenges and benefits." At Your Service. 2 (3), pp. 3-7.
Social ITSM: exploring challenges and benefits
Shrestha, Anup. 2012. "Social ITSM: exploring challenges and benefits." ITSMF Bulletin: Informed Intelligence.
A model to select processes for IT service management improvement
Shrestha, Anup, Cater-Steel, Aileen, Tan, Wui-Gee and Toleman, Mark. 2012. "A model to select processes for IT service management improvement." Lamp, John (ed.) 23rd Australasian Conference on Information Systems (ACIS 2012). Geelong, Australia 03 - 05 Dec 2012 Geelong, Australia.
Towards an improved IT service desk system and processes: a case study
Jäntti, Marko, Cater-Steel, Aileen and Shrestha, Anup. 2012. "Towards an improved IT service desk system and processes: a case study." International Journal on Advances in Systems and Measurements. 5 (3 & 4), pp. 203-215.