Study of supply chain structures for perishable products in Indian context

Abstract

This study discusses the inventory model for perishable goods with two product groups where one product group requires cold storage conditions and the other product group requires normal storage conditions. Considering the space capacity constraint, transportation constraint and the working capital constraints at the retailer end it is vital to determine optimal order quantity that can maximise the overall profitability of the retail outlet. The model proposed uses stochastic linear programming modelling to determine the optimal order quantity for multiple products each period such that the profit generated is maximised. A numerical illustration of the model is also provided by considering single period single item in inventory for two product categories.