An inventory model for a perishable and recoverable product

Abstract

Some perishable products are recoverable. This type of products is further constraint by its nature which quality and acceptability degrade with time. Insufficient inventory problem leads to inventory management problem which increased inventory cost. An inventory model is developed in order to optimize inventory cost. By investigating recent development and performance in inventory of perishable product, this model introduces the concept of recoverable behavior of perishable product. The model is developed in three stages which started with conceptual model, followed by mathematical model and represented in software-based model. The final result determined whether to wait for next stock replenishment or to assign other resources to fulfill demand.