Inventory Management for Perishable Two-Echelon.pptx

Inventory Management for Perishable Two-Echelon.pptx

1. Inventory Management for Perishable Two-Echelon

2. Managing perishable inventory in two-echelon supply chains is complex and requiresefficient inventory management systems to preserve product quality, reduceproduct waste, and, subsequently, costs. This study introduces a novel Economic Order Quantity (EOQ) model for deteriorating items that optimizes the replenishment policy.

3. RESEARCH GAP Although significant research has been conducted on inventory management of perishable products, most studies have focused on single-echelon systems, assuming either deterministic demand or constant deterioration rates. However, in a two-echelon perishable supply chain, where coordination between supplier and retailer is essential, the literature remains fragmented.

4. LITERATURE REVIEW The management of perishable inventory in two-echelon supply chains—typically involving a supplier and a retailer—has received growing academic attention due to its relevance in agri-food, pharmaceutical, and cold-chain sectors. Early research primarily focused on single-echelon systems, often assuming deterministic demand and constant deterioration rates ( Bottani et al., 2019).

5. Another significant research stream focuses on integrating logistics, perishability, and information technologies to improve coordination. Two-echelon inventory-routing models demonstrate that synchronizing delivery schedules and replenishment cycles can minimize waste and enhance freshness (Rohmer et al., 2019). The use of IoT technologies, such as temperature sensors and RFID, further supports real-time tracking of product age and quality, reducing uncertainty in inventory decisions (Ioannis & Li, 2020). Despite these advancements, IoT-enabled models remain underdeveloped, often limited to single-echelon analyses

6. RESEARCH OBJECTIVES The overarching goal of this research is to develop an integrated and optimized framework for inventory management in a perishable two-echelon supply chain , focusing on cost efficiency, freshness preservation, and coordination between supplier and retailer. To achieve this, the study is guided by the following specific objectives: