Towards a Socially Sustainable Inventory Optimization

DOI

10.2991/aebmr.k.210628.023How to use a DOI?

Keywords

Inventory Optimization, Perishable, Freshness, Social Sustainability, Supply Chain Management

Abstract

Inventory optimization is one of the critical decisions in perishable product supply chain management. This study develops a bi-objective inventory optimization model for perishable products. The model can determine the optimal order quantities that fulfill customer demand over time while simultaneously maximizing the profit and minimizing the freshness loss of products at the point of demand fulfillment. The fresh-ness loss value is regarded as the social sustainability performance metric. It is expected that the minimization of freshness loss contributes to the improved well-being of customers. The proposed model can track the product’s remaining shelf life and account for the amount of waste generated when it is expired. A numerical case is provided to demonstrate the utility of the model and the decision-making process that deals with the tradeoff between cost and freshness level. The proposed concept and methodology can serve as the basis for the future development of sustainable supply chain management, focusing on the social impacts.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Warut Pannakkong
AU  - Kim Cuc Vo Thi
AU  - Sun Olapiriyakul
PY  - 2021
DA  - 2021/06/29
TI  - Towards a Socially Sustainable Inventory Optimization
BT  - Proceedings of the 18th International Symposium on Management (INSYMA 2021)
PB  - Atlantis Press
SP  - 139
EP  - 145
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210628.023
DO  - 10.2991/aebmr.k.210628.023
ID  - Pannakkong2021
ER  -