Abstract
We examine optimal policies for multi-stage replenishment of an onboard food and beverage (F&B) item for a cruise liner. Typically, in cruise liner operations, F&B items are ordered from suppliers before the final number of bookings is realized so as to take advantage of price discounts due to advanced contracting. Later, based on the realized headcount, F&B consumption distribution is updated, and subsequently, additional purchases can be made from local spot markets at the origin just prior to the departure and/or at an intermediate stop during the voyage. We investigate and identify optimal contracting and inventory replenishment policies that incorporate contracted and expedited purchasing schemes. We show that while optimal stock market replenishments follow base stock policies, optimal contracting decision can be derived from a piecewise cost function. We discuss insights from our results and propose future research opportunities for similar settings with multiple replenishment instants.
| Original language | English |
|---|---|
| Pages (from-to) | 269-279 |
| Number of pages | 11 |
| Journal | Journal of Food Engineering |
| Volume | 70 |
| Issue number | 3 |
| DOIs | |
| State | Published - Oct 1 2005 |
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Keywords
- Base stock policies
- Cruise lines
- Food logistics
- Inventory management
- Stochastic optimization
ASJC Scopus subject areas
- Food Science
Cite this
Multi-stage onboard inventory management policies for food and beverage items in cruise liner operations. / Erkoc, Murat; Iakovou, Eleftherios T.; Spaulding, Andre E.
In: Journal of Food Engineering, Vol. 70, No. 3, 01.10.2005, p. 269-279.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Multi-stage onboard inventory management policies for food and beverage items in cruise liner operations
AU - Erkoc, Murat
AU - Iakovou, Eleftherios T.
AU - Spaulding, Andre E.
PY - 2005/10/1
Y1 - 2005/10/1
N2 - We examine optimal policies for multi-stage replenishment of an onboard food and beverage (F&B) item for a cruise liner. Typically, in cruise liner operations, F&B items are ordered from suppliers before the final number of bookings is realized so as to take advantage of price discounts due to advanced contracting. Later, based on the realized headcount, F&B consumption distribution is updated, and subsequently, additional purchases can be made from local spot markets at the origin just prior to the departure and/or at an intermediate stop during the voyage. We investigate and identify optimal contracting and inventory replenishment policies that incorporate contracted and expedited purchasing schemes. We show that while optimal stock market replenishments follow base stock policies, optimal contracting decision can be derived from a piecewise cost function. We discuss insights from our results and propose future research opportunities for similar settings with multiple replenishment instants.
AB - We examine optimal policies for multi-stage replenishment of an onboard food and beverage (F&B) item for a cruise liner. Typically, in cruise liner operations, F&B items are ordered from suppliers before the final number of bookings is realized so as to take advantage of price discounts due to advanced contracting. Later, based on the realized headcount, F&B consumption distribution is updated, and subsequently, additional purchases can be made from local spot markets at the origin just prior to the departure and/or at an intermediate stop during the voyage. We investigate and identify optimal contracting and inventory replenishment policies that incorporate contracted and expedited purchasing schemes. We show that while optimal stock market replenishments follow base stock policies, optimal contracting decision can be derived from a piecewise cost function. We discuss insights from our results and propose future research opportunities for similar settings with multiple replenishment instants.
KW - Base stock policies
KW - Cruise lines
KW - Food logistics
KW - Inventory management
KW - Stochastic optimization
UR - http://www.scopus.com/inward/record.url?scp=17944370347&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=17944370347&partnerID=8YFLogxK
U2 - 10.1016/j.jfoodeng.2004.04.044
DO - 10.1016/j.jfoodeng.2004.04.044
M3 - Article
AN - SCOPUS:17944370347
VL - 70
SP - 269
EP - 279
JO - Journal of Food Engineering
JF - Journal of Food Engineering
SN - 0260-8774
IS - 3
ER -