Quotation Estrada‐Moreno, Alejandro, Fikar, Christian, Juan, Angel, Hirsch, Patrick. 2019. A biased‐randomized algorithm for redistribution of perishable food inventories in supermarket chains. International Transactions in Operational Research. 26 (6), 2077-2095.


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Abstract

In supermarkets, perishable products need to be sold to consumers before a given deadline, after which their monetary value is significantly diminished or even completely lost. In the case of valuable products that should not be wasted, the following operational decision needs to be made as this deadline approaches: which is the best way to reallocate products from stores with surplus inventories to stores with unsatisfied demand? This question results in an optimization problem in which the goal is to minimize total transport cost plus opportunity cost associated with a reduction in market value of products being delivered after a given deadline. Our paper examines this inventory reallocation problem, which is modeled as an extension of the multi‐depot vehicle routing problem with soft deadlines, that is, delivery deadlines can be violated by incurring an opportunity or penalty cost. Being an NP‐hard optimization problem, a metaheuristic algorithm using biased‐randomization techniques is proposed as an effective solution approach. A series of computational experiments contribute to validate our algorithm and to illustrate the potential benefits that can be obtained by reallocating perishable and valuable products in various problem settings.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal International Transactions in Operational Research
Language English
Title A biased‐randomized algorithm for redistribution of perishable food inventories in supermarket chains
Volume 26
Number 6
Year 2019
Page from 2077
Page to 2095
Reviewed? Y
URL http://dx.doi.org/10.1111/itor.12668
DOI http://dx.doi.org/10.1111/itor.12668
Open Access N

Associations

People
Fikar, Christian (Details)
External
Estrada‐Moreno, Alejandro (Open University of Catalonia, Spain)
Hirsch, Patrick (University of Natural Resources and Life Sciences, Vienna, Austria)
Juan, Angel (Open University of Catalonia, Spain)
Organization
Produktionsmanagement (Taudes) (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
1112 Logistics (Details)
5347 Operations research (Details)
5354 Business logistics (Details)
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