Study On Ordering And Replenishment Policy For Perishable Product In Supply Chain

As economic integration and increased competition among enterprises, consumers have more demand on products and services, more stringent requirements on the delivery and growing diversity of consumer demand. Supply chain management has begun to gradually penetrate into various industries, from the production of daily necessities to the large-scale machinery equipment manufacturing, supply chain management thinking has played an important role. Perishable product, also known as perishable good, short shelf life product, time product, fashionable product or seasonal products. Due to the characteristics of the product itself, consumer preferences or new product competition and other factors, the production of such product has a long lead time, short sales of the low residual value products, demand uncertainty and other obvious features. As the improvement of technology, people's living standards and consumer choice for the diversity of goods, consumer demand becomes higher and higher and perishable product in the proportion of goods will increase. Therefore, more and more research is on perishable goods from business and academic.This paper will study on the ordering and transshipment policy of a 1-n supply chain system. First of all, I construct a conceptual model to describe the system, and then, on the basis of the former research, bring the lateral transshipment rate into the inventory model and make a new inventory model with demand rate, deteriorating rate and lateral transshipment rate as the endogenous variables. In this paper, another important condition is given that the planning period is not integral multiple of the order cycle. Under this condition, there must be a recession period at the end of the planning period. So this paper will take the last two orders into account including a complete order cycle and an incomplete order cycle.At last, I construct a profit model and get the optimal order cycle, the optimal order quantity and maximum profit with Matlab. Through contrasting the result, the conclusion is lateral transshipment can improve the retailer profit. This paper considers the supply chain and makes the two retailers as a whole. Another conclusion is that lateral transshipment can improve the system profit.