Supply chain simulation: A study on reorder policies for perishable food products

In this paper, we analyze three traditional reorder policies (i.e., EOI, EOQ and S,s) applied to 5 different products, in a 2-echelon supply chain. A particular attention is placed to fresh products with limited shelf life, and to the suitability of applying the inventory management policies to those products. An ad hoc simulation model, reproducing the reorder process of the two supply chain players, is developed under MS ExcelTM and used to simulate the low of the different products along the supply chain, according to the different reorder policies. From the simulation, the minimum cost setting is derived for all policies, together with additional performance parameters (e.g. the throughput time of items along the supply chain), which allow assessing the suitability of a reorder policy for a given product. From the simulation outcomes, some guidelines are derived for the optimal inventory management of perishable products. Since the supply chain and product data are derived from a real scenario, it is expected that our outcomes and guidelines are of practical usefulness to inventory managers.