Heuristic Algorithm for Controlled Fresh Produces Inventory Model with Cross-perishable Effects

Abstract

Agricultural business doers perform storing products for agricultural products distribution. Some will store various products in the same storage area. Agricultural products, especially the fresh ones, still carry out biochemical and physiological activities. This study aims to develop an inventory model for fresh produces by considering the effects of cross-perishability to minimize total inventory costs. The model formulation refers to the cross-perishability inventory control approach developed and is adjusted to be more applicable in the context of storing various fresh produces simultaneously. The model is solved using a heuristic algorithm designed to determine the optimal combination of decision variables. The main contribution of this study is the development of a heuristic algorithm based on cross-deterioration formulation that can be applied in fresh product warehouse management practices. By determining the quantity of products ordered, the ordering time, and the preservation efforts, the inventory costs are as minimum as possible, because fresh produces can be stored for a long time and the shortage does not occur so that it is able to fulfill the demands.