Perishable inventory network modeling through integrated coordination mechanism

This research proposes a collaborative network (CN) model of perishable inventory systems through integrating 1) demand and capacity sharing protocols (DCSP), and 2) best matching protocols (BMP). Collaboration among the enterprises overcomes the arbitrary nature of customer orders and demand uncertainty. The objective of this research is to model the perishable inventory network when shortage and excess capacity exist. The proposed CN aims to minimize the unnecessary outdating and shortage costs due to the criticality and relatively short shelf-life of the perishable items. In this research, a hybrid DCSP-BMP model is proposed to ensure that the enterprises are making better collaborations and attain mutual benefits. Experiments are conducted to test the proposed DCSP-BMP model in the perishable inventory CN. The results show that collaboration among perishable item inventories increases the total network profit and reduces the total inventory held, number of outdated items, and unsatisfied demand. Moreover, the results show that the number of collaborations among the inventories increases with time.