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The Study on the Distribution Center Location and Safety Inventory Problem of Perishable Product with Multi-usage

Author: WangLing
Tutor: Yang
School: Huazhong University of Science and Technology
Course: Management Science and Engineering
Keywords: Perishable foods Deterioration rate Multi-usage Capacity constraints Safety inventory
CLC: F252;F224
Type: Master's thesis
Year: 2010
Downloads: 54
Quote: 1
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Abstract


With the highly development of economy and life level, the requirement of quantity and quality to the perishable foods are all increasing,which makes how to decrease their lost and increase resource utilization rate a key problem. Since perishable foods with different usage in the life circle are very sensitive to time, if the resources can be used more effectively, the lost brought by perishable foods can be reduced while the quality can still be guaranteed, raising customer’s satisfaction to some extent. So the research on the multi-usage distribution center location problem is very useful both in theoretical and practical.Through studying researches about related backgrounds on location problems and perishable foods, the models are extended in 3 dimensions with case study when focusing on its characteristic of the multi-usage, and the perishable foods DC location problems under different situations are discussed. Firstly, an assumption is made that deterioration rate is constant, the DC location model with capacity constraints is established under the conditions that out of stock is not allowed and lead time is zero, the model is solved through Lagrange algorithm. In order to verify whether the algorithm is useful, the results are compared with what created by Lingo, meanwhile it is proved that considering multi-usage and deterioration is useful because it does save cost and make best use of resources. Secondly, it is assumed that deteriorate follows Weibull distribution, model is solved with same algorithm with the first part. At last, the model is extended from single order cycle to multi-cycles, a new model with capacity constraints and safety stock is established when out of stock is not allowed and lead time is zero, then the analysis is made through a specific case. Finally, a conclusion about the whole paper is made and possible further study directions were proposed.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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