Inventory Management for distributors of perishable products

Abstract

This paper considers the problem of determining the best inventory managementpolicy for perishable products on fish trading companies. Themain objective is to determine the inventory management policy withsafety stock for a probabilistic model, which maximizes the expected dailyprofit by considering the product, by considering that the products areperishables and only could be stored for a maximum number of days.This paper proposes a methodology based on Montecarlo simulation.Computational experiments using real world data from a fish tradingcompany in the Colombian market shows the efficiency and the effectivenessof the proposed methodology based on the maximization of theaverage net profit.