Determining inventory policy for perishable goods with transshipment possibilities based on sufficiency and insufficiency point

Date of Publication

2016

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Industrial Engineering

Subject Categories

Engineering

College

Gokongwei College of Engineering

Department/Unit

Industrial and Systems Engineering

Thesis Adviser

, Bryan Gobaco

Defense Panel Chair

Dennis Cruz

Defense Panel Member

; Ronaldo Polancos

;

Abstract/Summary

Because of the continuous growth of various industries, the focus of inventory management for perishable goods have created an opportunity to satisfy more demand spanning over a geographical area, but along with the opportunity, new problem arises as management are now facing the challenge of handling the inventory from a network of retailers. Different alternatives are provided by other literatures to minimize the risks of handling inventory such as forecasting, external parties, and transshipment between retailer. Incorporating transshipment has become a considerable option for retailers to become flexible in situations where stockouts and perishability could occur. The study aims to minimize the overall inventory risks by introducing two limits in the inventory level, wherein retailers would be able to optimize the reallocation of inventory with respect to transshipment. A mixed integer linear programming model (MILP) was then made to optimize the placement of these two limit, called the sufficiency point (SP) and insufficiency point (IP).

In modelling process, the location of the SP and IP points in the inventory level became the decision variables of the model, and was assumed to adjust with respect to the demands of the succeeding periods.

Conclusions showed that the model was able to work under various scenarios, with being able to decide whether transshipments are to occur or not. On further analysis, the application of transshipment under a network of retailers were found to be considerable on situations wherein order quantity would be relatively small, otherwise, daily deliveries would be more favorable.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU17371

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

133 leaves : illustrations (some color) ; 29 cm.

Keywords

Transshipment; Shipment of goods

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