Optimizing two multi-echelon inventory systems for perishable products with price and stock dependent demand in supply chain

Two inventory models for perishable products in the chain are proposed in this paper, one with starting shortages and the other with ending shortages. The demand for perishable products is dependent on price and stock. The supply chain is composed of one manufacturer, one distribution center, and one retailer. The objective of these two models is to maximize the average prot per unit time by determining the optimal replenishment cycle, frequency, and quantity. The property of optimal solutions for two cases of two models is discussed to verify the existence of optimal solutions. Algorithms for searching for optimal solutions are presented. To investigate the effect of parameters on optimal solutions and obtain some management insights, computational experiments with sensitivity analyses are carried out. Finally, conclusions are presented, as well as recommendations for further research.