An Analysis of Perishable Product Order Timing in Perspective of Service Level

Abstract

Abstract:

Most existing researches on order timing of perishable product regard price or order quantity as variables, aiming to calculate the change of cost or profit so as to get the research results. Little research looks on service level as a variable. Therefore, studying the Pareto optimal area of the perishable product order timing by means of service level is of significance. Based on the newsboy model, a two-echelon supply chain which is comprised of a supplier and a retailer is discussed. Both sides’ preference of order timing is analyzed，viewing the service level as a variable. According to the retailer’s service level, the figure of area distribution is depicted for the suppliers and the retailers order preference. Thus the Pareto optimal area is obtained when the retailer places an order. It can achieve a win-win effect when the retailer places an order in the Pareto optimal area. So this research may provide the retailer with a valuable guidance for its decision of order timing.

Key words: delayed order, perishable product, service level

XIONG Hengqing. An Analysis of Perishable Product Order Timing in Perspective of Service Level[J]. Industrial Engineering Journal .

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