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The purpose of this paper is to review and analyze the perishable inventory models along various dimensions such as its evolution, scope, demand, shelf life, replenishment policy, modeling techniques and research gaps.

In total, 418 relevant and scholarly articles of various researchers and practitioners during 1990-2016 were reviewed. They were critically analyzed along author profile, nature of perishability, research contributions of different countries, publication along time, research methodologies adopted, etc. to draw fruitful conclusions. The future research for perishable inventory modeling was also discussed and suggested.

There are plethora of perishable inventory studies with divergent objectives and scope. Besides demand and perishable rate in perishable inventory models, other factors such as price discount, allow shortage or not, inflation, time value of money and so on were found to be combined to make it more realistic. The modeling of inventory systems with two or more perishable items is limited. The multi-echelon inventory with centralized decision and information sharing is acquiring lot of importance because of supply chain integration in the competitive market.

Only peer-reviewed journals and conference papers were analyzed, whereas the manuals, reports, white papers and blood-related articles were excluded. Clustering of literature revealed that future studies should focus on stochastic modeling.

Stress had been laid to identify future research gaps that will help in developing realistic models. The present work will form a guideline to choose the appropriate methodology(s) and mathematical technique(s) in different situations with perishable inventory.

The current review analyzed 419 research papers available in the literature on perishable inventory modeling to summarize its current status and identify its potential future directions. Also the future research gaps were uncovered. This systemic review is strongly felt to fill the gap in the perishable inventory literature and help in formulating effective strategies to design of an effective and efficient inventory management system for perishable items.

The purpose of this paper is to contribute to the understanding of the relationship between information sharing and performance of perishable product supply chains (PPSC). Building on transaction cost economics (TCE), organisational information processing theory (OIPT), and contingency theory (CT), this study proposes a theoretical framework to guide future research into information sharing in perishable product supply chains (IS-PPSC).

Using the systematic literature review methodology, 48 peer-reviewed articles are carefully selected, mapped, and assessed. Template analysis is performed to unravel the relationship mechanisms between information sharing and PPSC performance.

The authors find that the relationship between information sharing and PPSC performance is currently unclear, and there is inconsistency in the positioning of information sharing among constructs and variables in the IS-PPSC literature. This implies a requirement to refine the relationship between information sharing and PPSC performance. The review also revealed that the role of perishable product characteristics has largely been ignored in existing research.

This study applies relevant multiple theoretical perspectives to overcome the ambiguity of the IS-PPSC literature and contributes nine propositions to guide future research. Accordingly, this study contributes to the refined roles of relationship uncertainty, environmental uncertainty, information sharing capabilities, and perishable product characteristics in shaping the relationship between information sharing and PPSC performance.

This paper sets out to investigate the impact of various supply chain advancements within a perishable goods environment.

The study uses discrete event simulation to evaluate diverse adjustments within the distribution framework of a food manufacturer and their major customers. Analysed aspects include level of safety inventory held, inventory issuing, replenishment and through‐put policies and increased demand transparency due to collaboration between manufacturer and various retailers. The importance and the impact of these factors are investigated using a wide variety of performance measures.

Several promising practice designs are generated and recommended for implementation to improve the experienced shortcomings. Engaging in collaborative replenishment is emphasized in particular even in cases of limited scope. The analysis further reveals the importance of advanced inventory dispatch policies.

The research focused on the delivery framework of a particular manufacturer and the chosen products. Hence, research findings may differ and need to be modified before drawing conclusions for different products, companies or industries.

Evaluating the impact of various stages of collaboration within a perishable product supply chain environment has not been addressed much within prior SCM research. The analysis tackles a variety of issues that specifically arise within a perishable goods framework and aims to support practitioners by identifying possible pitfalls and areas of improvement.

The purpose of this paper is to provide a literature review of the perishable food supply chain quality (PFSCQ). It includes all the products/process from the farm to folk of perishable food (milk, meat, vegetable, grains and butter).

The methodology of a structured literature review involves selection of a representative sample of articles followed by classification of articles on the basis of research methodology and content of PFSCQ in the paper.

Research toward PFSCQ has risen in last five years. Fewer articles are addressing issues of developing countries then developed countries. Majority of the articles involved multiple as entity of analysis (combination of supplier, distributor, manufacturer, retailer and consumer), information as element of exchange and chain as the level of analysis. A large number of articles involved “agri-food,” “dairy” and “pork” as perishable products. Majority of articles used “case study” methodology. Statistical analysis as a tool for problem solving was used in majority of articles. Performance measurement aspect is also on growth in PFSCQ literature. Information sharing, logistic management, strategic management, demand forecasting and integration among the various stakeholders of PFSCQ are some of the critical issues.

Many literature reviews that aim at critical examination of supply chain literature are reported but none of them focussed exclusively on content of PFSCQ. Another unique feature of this paper is that the sample size of articles with respect to number of papers (481 papers) as well as number of journals (141 journals) is quite large. The paper spans a longer time span of 20 years (1994-2013) as well.

The purpose of this paper is to assess whether an existing sourcing strategy can effectively supply products of appropriate quality with acceptable levels of product waste if applied to an international perishable product supply chain. The authors also analyse whether the effectiveness of this sourcing strategy can be improved by including costs for expected shelf life losses while generating order policies.

The performance of sourcing strategies is examined in a prototype international strawberry supply chain. Appropriate order policies were determined using parameters both with and without costs for expected shelf life losses. Shelf life losses during transport and storage were predicted using microbiological growth models. The performance of the resulting policies was assessed using a hybrid discrete event chain simulation model that includes continuous quality decay.

The study's findings reveal that the order policies obtained with standard cost parameters result in poor product quality and large amounts of product waste. Also, including costs for expected shelf life losses in sourcing strategies significantly reduces product waste and improves product quality, although transportation costs rise.

The study shows that in perishable product supply chain design a trade-off should be made between transportation costs, shortage costs, inventory costs, product waste, and expected shelf life losses.

By presenting a generically applicable methodology for perishable product supply chain design, the authors contribute to research and practice efforts to reduce food waste. Furthermore, product quality information is included in supply chain network design, a research area that is still in its infancy.

The purpose of this paper is to present a simple model to demonstrate how a trade‐off between incomplete contract distortions and excessive governance costs determine an agricultural firm's organizational choices.

In this paper, it is argued that the perishable nature of products exaggerates the incomplete contract distortion, such that products with a short biological production cycle (e.g. eggs) are likely to be operated under vertical integration, products with a medium cycle (e.g. poultry) are likely to be operated under product contracts, and products with a long cycle (e.g. pork) are likely to be operated under marketing contracts.

This model helps explain why vertical integration dominates the US egg industry, why product contracts are prevalent in the turkey industry, and why marketing contracts have become common in the pork industry. The implications from this model are also applicable to other sectors and other countries, including China's agricultural sectors.

This paper illustrates that perishable products are more vulnerable to opportunism, because the incomplete contract distortion is exaggerated by the perishable nature of the products. However, a local government can reshape firms' choices of vertical coordination by improving its legal infrastructure to reduce the incomplete contract distortions and then weaken the role of the perishable nature of products, so that contracting (product or marketing) may take place. Note that agricultural producers benefit more in selling their products through product/marketing contracts than spot markets.

The purpose of this paper is to present a methodology to analyze the risks present in perishable food supply chain and to determine the most effective risk mitigation strategies. It is achieved by understanding the dynamics between various risks in perishable food supply chain and modeling them using interpretive structural modeling (ISM).

Four categories and 17 types of risk are established from literature and conducting brainstorming sessions with managers/engineers in Indian dairy firms. A methodology is proposed using ISM, risk priority number and risk mitigation number to prioritize risk mitigation strategy decisions for the dairy industry.

For a perishable food supply chain, risk positioned at lower levels (levels 1 or 2) in the hierarchy should be targeted first, while formulating mitigation strategies. To investigate further, risk- enabling factors which are identified for an Indian dairy firm for these levels 1 and 2 risks and mitigation strategy prioritization show that supplier side risks are more dominant followed by market risks and process risks.

This proposed methodology has not been statistically validated or empirically tested, and factors taken are in the Indian context, but the authors believe that the study is highly relevant to other markets as well because the ISM-based analysis is for generic perishable food supply chain environment.

This study provides a useful approach to managers/decision makers to identify, analyze and prioritize risk in the supply chain. It also provides insights into the mutual relationships of supply chain risks which would help them to focus on the effective risk mitigation strategies formulation. The study provides the insights to benchmark and risk management in the dairy industry environment with priority considerations.

This paper provides an integrated approach to identifying, quantify, analyze, evaluate and mitigate the risks of perishable food (in the dairy environment) in the Indian context.

This study aims to provide a time- and price-sensitive market strategy for merchants to handle the markdown price strategy. The market demand for perishable products is usually price – and quality (freshness) – sensitive. The proper handling of markdown-price strategies can help merchants enhance competitiveness and maximize operational performance.

A markdown strategy consisting of price and markdown time was developed to explore the properties of market strategies based on the dynamic quality evaluation. The strategy considers multiple price discounts and multiple markdown times. The optimal price decisions in each stage and the optimal markdown times were derived during the selling season.

The results showed the following. A retailer always raises the initial price if it wants to adopt multiple price-markdown strategies. A high initial price may lead to a high inventory at the early stage and bring the next price reduction in advance. Large price discounts can be used to reduce the inventory later. The higher the previous price, the shorter the interval between the next price reduction. The markdown strategies showed that the regular discount as a new business model is not the best pricing model for perishable products. A time- and price-sensitive strategy, however, can increase operational performance and provide new insights for perishable products.

The results showed the following. A retailer always raises the initial price if it wants to adopt multiple price-markdown strategies. A high initial price may lead to a high inventory at the early stage and bring the next price reduction in advance. Large price discounts can be used to reduce the inventory later. The higher the previous price, the shorter the interval between the next price reduction. The markdown strategies showed that the regular discount as a new business model is not the best pricing model for perishable products. A time- and price-sensitive strategy, however, can increase operational performance and provide new insights for perishable products.

Multi-unit discounts (MUDs, e.g. “3 for $4”) typically increase sales relative to other discounting frames. This study demonstrates the value of MUDs by showing that positive multi-unit price/quantity signals are potent enough to match and even exceed the sales produced by larger discounts on single items. However, there is reason to believe that MUDs can produce neutral effects in some cases (e.g. among consumers interested in only single-unit purchases) and even negative effects in others. In addition, the study considers whether MUDs can, in some cases, reduce purchase quantities by signaling smaller-than-otherwise-planned purchase amounts and/or lower-quality products.

The effectiveness of MUDs is tested in both the field and lab. Study 1 models purchase quantities stemming from 2,374 purchases of discounted items at a mass retailer. Purchased products ranged in type from pantry items to apparel and electronics, and ranged in price from 44¢ to $99.99. There were 1,530 single-unit discounts, 596 two-unit discounts and 248 discounts, involving three or more units. Study 2 consists of a laboratory experiment that overcomes the shortcomings of Study 1 by accounting for non-purchasers, controlling for product classes and testing whether smaller MUDs can lead to lower purchase quantities for larger-purchase-quantity products.

The results of both the field study and the laboratory experiment indicate that MUDs’ monetary cue (savings) and purchase-quantity cue (volume) increase purchase quantities. Generally, purchase quantities increased monotonically with the number of units offered in the discount. In fact, the quantity cue is so effective that it can increase sales enough as to substitute for larger discounts. However, in some instances, MUDs can decrease intended purchase quantities. The negative effect of MUDs is the most pronounced for larger unit deals, offering deeper discounts on perishable goods.

This research is the first to demonstrate that the power of the signals provided by MUDs may be so positive as to lead them to be more effective than discounts of substantially larger value but also so negative as to render them less effective than single-units discounts. This negative outcome poses a threat beyond those typically associated with discounts, in that rather than consumers simply discounting a discount, in which case the discount remains positive even if their impact at the margin wanes, the MUD frame may actually reduce sales.

This research proposes a decision framework for using non-financial measures to define a replenishment policy for perishable health products. These products are perishable and substitutable by nature and create complexities for managing inventory. Instead of a financial measure, numerous measures should be considered and balanced to meet business objectives and enhance inventory management.

This research applies a multi-methodological approach and develops a framework that integrates discrete event simulation (DES), analytic hierarchy process (AHP) and data envelopment analysis (DEA) techniques to define the most favourable replenishment policy using non-financial measures.

The integration framework performs well as illustrated in the numerical example; outcomes from the framework are comparable to those generated using a traditional, financial measures-based, approach. This research demonstrates that it is feasible to adopt non-financial performance measures to define a replenishment policy and evaluate performance.

The framework, thus, prioritises non-financial measures and addresses issues of lacking information sharing and employee involvement to enhance hospitals' performance while minimising costs. The non-financial measures improve cross-functional communication while supporting simpler transformations from high-level strategies to daily operational targets.