In this paper we propose an approach for solving problems of optimal resource capacity allocation to a collection of stochastic dynamic competitors. In particular, we introduce the knapsack problem for perishable items, which concerns the optimal dynamic allocation of a limited knapsack to a collection of perishable or non-perishable items. We formulate the problem in the framework of Markov de...

In current markets of perishable goods such as fish and vegetables, sellers are typically in a weak bargaining position, since perishable products cannot be stored for long without losing their value. To avoid the risk of spoiling products, sellers have few alternatives other than selling their goods at the prices offered by buyers in the markets. The market mechanism needs to be reformed in or...

We examine whether the Coase conjecture [7, 14, 4, 10] is robust against slight ability of commitment of the monopolist not to sell the durable goods to consumers. We quantify the commitment ability in terms of the speed that the durable goods perish, while keeping the time between the o ers small. We demonstrate that the slight commitment capability makes a substantial di erence by constructin...

We consider inventory systems of “perishable” goods. Perishable goods cannot be carried from one period to another. Examples of perishable goods include newspaper, Christmas tree, and many grocery items like milk and banana. Here, a period could be one day, or one week, or any time frame that is appropriate in the application context. Suppose that a retailer sells a particular perishable produc...

We study the global optimal solution for a planning problem of inventory control of perishable products and non-stationary demand.

An Economic Lot-sizing(ELS) problem with perishable inventory has been studied extensively over the years and plays a fundamental role in the inventory management. In this paper, we consider the problem where backlogging is allowed with the general economies of scale cost functions. Since the special case without backlogging is NP-hard, the considered problem is also NP-hard. The main contribut...

This paper studies the computation of order up to levels for a stochastic programming inventory problem of a perishable product. Finding a solution is a challenge as the problem enhances a perishable product, fixed ordering cost and non-stationary stochastic demand with a service level constraint. An earlier study [6] derived order-up-to values via an MILP approximation. We consider a computati...

The Supply Chain Integrated Ordering Network (SCION) Depot Bookings system automates the planning and scheduling of perishable and non-perishable commodities and the vehicles that carry them into J. Sainsbury depots. This is a strategic initiative, enabling the business to make the key move from weekly to daily ordering. The system is mission critical, managing the inwards flow of commodities f...

We propose a methodology useful for food services, allowing contribution margins to be optimized. This is based on statistical tools, inventory models and financial indicators. To reduce the gap between theory and practice, we apply this methodology to the case study of a Chilean company to show its potential. We conduct a real-world demand data analysis for perishable and non-perishable produc...