Analysis of postponement strategy for perishable items by EOQ-based models

Jian Li, Edwin Tai Chiu Cheng, Shouyang Wang

Research output: Journal article publicationJournal articleAcademic researchpeer-review

55 Citations (Scopus)


This paper develops economic-order-quantity model (EOQ)-based models with perishable items to evaluate the impact of a form postponement strategy on the retailer in a supply chain. We formulate models for a postponement system and an independent system to minimize the total average cost function per unit time for ordering and keeping n perishable end-products. An algorithm is given to derive the optimal solutions of the proposed models. The impact of the deterioration rate on the inventory replenishment policies is studied with the help of theoretical analysis and numerical examples. Our theoretical analysis and computational results show that a postponement strategy for perishable items can give a lower total average cost under certain circumstances.
Original languageEnglish
Pages (from-to)31-38
Number of pages8
JournalInternational Journal of Production Economics
Issue number1
Publication statusPublished - 1 May 2007


  • Economic-order-quantity model (EOQ)
  • Inventory management
  • Perishable items
  • Postponement strategy

ASJC Scopus subject areas

  • General Business,Management and Accounting
  • Economics and Econometrics
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering


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