MATHEMATICAL MODELING OF INVENTORY DYNAMICS IN A TWO-LEVEL SUPPLY CHAIN WITH FRESHNESS CONSTRAINTS

Shilpi Jain; AJAY KUMAR Balmiki; Govind Shay  Sharma; Saurabh Kumar  Gupta

doi:10.5269/bspm.76404

Shilpi Jain Poornima College of Engineering
AJAY KUMAR Balmiki Vivekananda Global University
Govind Shay Sharma
Saurabh Kumar Gupta

Abstract

This paper explores the inventory dynamics of a two-level supply chain,
where distribution centers supply fresh products to supermarkets while considering
the impact of freshness degradation. We develop a mathematical model to
analyze the inventory levels of a product at a distribution center over a supply
interval, incorporating the coefficient of freshness decay, θ. The study derives equations
governing inventory changes, initial stock levels, and replenishment quantities.
The results indicate how freshness degradation influences inventory replenishment
requirements, helping optimize stock levels at supermarkets. A graphical analysis
further illustrates the impact of key parameters on inventory management and
profit margins.

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