Simulation Study about Perishable Products Inventory System with Resalable Product Return

With the rapidly changing environment, more and more products are having the characteristics of the perishable product. Simultaneously, our companies face the problem of product return more often than before. Based on the idea of product age, using discrete event simulation technique, the model about the perishable product inventory system with resalable product return ,under the assumption that part of demand that can not be fulfilled totally by the serviceable inventory position will be backordered, is presented for continuous review model under the control of the order-up to inventory strategy. The algorithm proposed by Nelder and Mead is used to find the optimal value of the order-up-to parameter. Also, the traditional system with reusable returns without considering product perishability is compared with the perishable product system with reusable returns.