Title: Comprehensive model for optimal management of perishable goods incorporating nonlinear carrying costs, learning effects and expiration dates

Authors: Ketan B. Naik; Monika K. Naik

Addresses: Department of Sciences and Humanities, Government Engineering College, Modasa, Gujarat, India ' Department of Applied Sciences and Humanities, PIET, Faculty of Engineering and Technology, Parul University, Vadodara, Gujarat, India

Abstract: In today's dynamic market, the demand for fresh produce is surging, driven by factors such as the freshness index, shelf space allocation, selling prices, and expiration dates. This study delves into the market demand's intricate dynamics, positing a quadratic period function as its foundation. Key influencers include freshness index, selling price, shelf space allocation, and expiration date. At the conclusion of the replenishment cycle, maintaining a higher stock level proves advantageous. This article employs a nonlinear analytical approach, incorporating time and stock quantity, to assess the demand rate, learning effects, and carrying costs. To enhance a retailer's profitability margin, a novel strategy is presented, utilising classical optimisation techniques. The derived model is substantiated through a numerical illustration and sensitivity analysis, offering valuable managerial insights by showcasing the concave nature of the profit function through negative definiteness of the Hessian matrix.

Keywords: time-price stock-based demand; learning effect; nonlinear carrying cost; freshness index; expiration date.

DOI: 10.1504/IJPQM.2026.153323

International Journal of Productivity and Quality Management, 2026 Vol.47 No.4, pp.504 - 528

Received: 30 Dec 2023
Accepted: 13 Jan 2024
Published online: 01 May 2026 *

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