Heuristic dynamic approach to perishable products in presence of deterioration effect

Abstract

Joining warehouses and suppliers facilities to deliver the finished product to the end customer is a complex process that requires extensive consideration. The resulting chain is an integration of such entities as the supplier, manufacturer, distributor, warehouse, retailer, and end customer. A perishable product is any product that can rot, spoil, or deteriorate rapidly and, soon after manufacture, may become unusable or obsolete. Perishable products thus have special nutritional characteristics that necessitate care and unique treatment for them. Such products can be anything that becomes outdated a short time after production or harvest, such as fruits, vegetables, meat, certain drinks, blood, and pharmaceuticals. The objective of this study is to find the best heuristics for distributing multiple perishable products as early as possible to maximize profit. Case studies involving featuring perishable products at different rates of degradation with multiple retailers and limited transportation capacity were carried out to demonstrate the effectiveness of the proposed method.