Inventory policy for perishable items: evaluating and improving inventory policy for egg products of Coop Mart Ly Thuong Kiet

Abstract

The perishable item has a large affect on sale industry due to its specific factor, Pk, the possibility of the product which has k days to expire to be purchased by the customer. Pk make the problem for the company is more complex than normal item. The purpose of this thesis is to model an inventory policy for perishable item; chicken egg. This thesis will use simulation software and Monte Carlo tool to evaluating the current model of the company to find company’s problems, also by using the same method to find out the new feasible policy to minimize total cost rate. The total cost is combined of ordering cost, holding cost, lost sale cost, disposing cost. All the cost above will be calculated in this thesis to show how important the factor Pk is. Keywords: perishable item, Pk, shell-life, reorder point, order quantity.