Inventory Management for distributors of perishable products

Abstract

This paper considers the problem of determining the best inventory management

policy for perishable products on fish trading companies. The

main objective is to determine the inventory management policy with

safety stock for a probabilistic model, which maximizes the expected daily

profit by considering the product, by considering that the products are

perishables 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 trading

company in the Colombian market shows the efficiency and the effectiveness

of the proposed methodology based on the maximization of the

average net profit.