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EOQ for perishable goods: modification of Wilson’s model for food retailers

    Shouzhen Zeng Affiliation
    ; Oleksandr Nestorenko Affiliation
    ; Tetyana Nestorenko Affiliation
    ; Mangirdas Morkūnas Affiliation
    ; Artiom Volkov Affiliation
    ; Tomas Baležentis Affiliation
    ; Chonghui Zhang Affiliation

Abstract

A timely response to a fluctuating and ever-changing consumer demand is an important decision for a company, as it may impact its position in the market. Thus, proper inventory management becomes a focal point in retail business process management and can provide a substantial competitive advantage. In this paper, we introduce a modified version of Wilson’s model, which takes into account trends in consumer demand and offer flexibility in reordering time. The illustration of the proposed model is presented, showing the significant economic benefit under particular conditions.

Keyword : economic order quantity, Wilson’s model, inventory management, retail

How to Cite
Zeng, S., Nestorenko, O., Nestorenko, T., Morkūnas, M., Volkov, A., Baležentis, T., & Zhang, C. (2019). EOQ for perishable goods: modification of Wilson’s model for food retailers. Technological and Economic Development of Economy, 25(6), 1413-1432. https://doi.org/10.3846/tede.2019.11330
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Dec 16, 2019
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