Title:
Information Sharing to Improve Retail Product Freshness of Perishables (ed.1)

dc.contributor.author Ferguson, Mark E.
dc.contributor.author Ketzenberg, Michael E.
dc.date.accessioned 2004-09-14T18:04:30Z
dc.date.available 2004-09-14T18:04:30Z
dc.date.issued 2004-09-14
dc.description.abstract We explore the value of information (VOI) in the context of a retailer that provides a perishable product to consumers and receives replenishment from a single supplier. We assume a periodic review model with stochastic demand, lost sales, and order quantity restrictions. The product lifetime is fixed and deterministic once received by the retailer, although the age of replenishment provided by the supplier varies stochastically over time. Since the product is perishable, any unsold inventory remaining after the lifetime elapses must be discarded (outdated). Without the supplier explicitly informing the retailer of the product age, the age remains unknown until receipt. With information sharing, the retailer is informed of the product age prior to placing an order and hence can utilize this information in its decision-making. We formulate the respective scenarios as Markov Decision Processes (MDPs) and measure the VOI as the marginal improvement in cost that the retailer achieves with information sharing, relative to the case when no information is shared. We establish the importance of information sharing and identify the conditions under which relatively substantial benefits can be realized. en
dc.format.extent 274688 bytes
dc.format.mimetype application/pdf
dc.identifier.uri http://hdl.handle.net/1853/3211
dc.language.iso en_US
dc.publisher Georgia Institute of Technology
dc.relation.isreplacedby http://hdl.handle.net/1853/7079
dc.subject Perishable inventory en
dc.subject Value of information en
dc.title Information Sharing to Improve Retail Product Freshness of Perishables (ed.1) en
dc.type Text
dc.type.genre Working Paper
dspace.entity.type Publication
local.contributor.corporatename Scheller College of Business
relation.isOrgUnitOfPublication a2f83831-ae41-4d65-82ff-c8bf95db4ffb
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